Hong Kong: Sinotrans Shipping hopes to raise up to $1.47bn in an initial public offering of 1.4bn shares prior to a Hong Kong listing later this month, reports Dow Jones. The company, which has an option to increase the amount of shares on offer from 35% by an additional 15% (worth a cumulative $1.69bn), is expected to use the money raised to fund its fleet expansion, settle its debts and replenish its working capital.
According to sources, book building (i.e. price banding) for the IPO has already begun and the sale price is expected to be announced on November 17. The company is scheduled to list on the Hong Kong stock exchange on November 23.
Sinotrans Shipping currently operates a fleet of 26 dry-bulk carriers, three single-hulled crude carriers and five container vessels. Analysts have said the company plans to increase its dry-bulk fleet capacity 14% by 2009, while its oil- and container-shipping capacity will rise 37% this year. [07/11/07]
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