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Ningbo port plans to reduce IPO

Shanghai: China's Ningbo Port said on Monday its reduced initial public offering size would benefit shareholders and boost its post-debut share price, writes Reuters. The firm, which cut the size of its Shanghai IPO by 20 percent to up to 7.4 billion yuan ($1.1 billion), also said it expects net profit to grow by at least 10 percent this year on increased commodity shipments.

Ningbo Port said on Sunday that it would sell 2 billion yuan-denominated A-shares in Shanghai at 3.18 to 3.70 yuan apiece, compared with a previous target of up to 2.5 billion shares.

"The price range will give room for upside on the secondary market," Board Secretary Huang Weiping told investors in an online roadshow.
"Reducing the IPO size will decrease the number of tradable stocks and fatten earnings per share, thus lending further support to the stock price after listing," Huang said.

Headquartered in the ancient Chinese port city of Ningbo, the company has said it would also seek a Hong Kong listing, without giving a timetable. Executives gave no further detail on those plans on Monday. Chairman Li Linghong added that the company would need to add two container terminals each year for the foreseeable future to keep up with demand.

Ningbo Port expects at least 10 percent growth in its profit this year, Chief Financial Officer Dai Minwei said during the online roadshow.  [14/09/10]

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