Private placement aims for US$1.2b
By Pan Xiaoyi |
March 5, 2010, Friday
|
Print Edition
Print Edition
CHINA Railway Construction Corp said yesterday it plans to raise up to 8 billion yuan (US$1.2 billion) through a private placement.
The dual-listed company will sell as many as 1.035 billion A-shares at no less than 7.74 yuan each. No more than half of the amount will be issued to its parent in cash and assets, which will allow the company to acquire certain assets from the parent that were not transferred to it during the initial public offering, according to a statement it filed to Shanghai Stock Exchange.
Some major projects were not included in the dual listing in the first half of 2008 because they were at an early stage of operation and not able to generate profits. Now these projects are mature enough to generate profits soon or already profitable, according to the company.
The remaining shares will be subscribed by no more than nine investors and proceeds will be mainly used for investment, development and operations, the company said.
"This could strengthen the company's core competitiveness and ensure a sustainable development of the company by facilitating the upgrading and adjustment of the production structure," said Li Guorui, the company's chairman, in the statement.
The Wall Street Journal reported that Li said yesterday profit for this year will grow robustly thanks to the government's massive investment in infrastructure construction. The company predicted in January that net income in 2009 jumped over 50 percent from 3.64 billion yuan a year earlier.
The share placement is subject to the approval of shareholders and relevant government authorities.
The dual-listed company will sell as many as 1.035 billion A-shares at no less than 7.74 yuan each. No more than half of the amount will be issued to its parent in cash and assets, which will allow the company to acquire certain assets from the parent that were not transferred to it during the initial public offering, according to a statement it filed to Shanghai Stock Exchange.
Some major projects were not included in the dual listing in the first half of 2008 because they were at an early stage of operation and not able to generate profits. Now these projects are mature enough to generate profits soon or already profitable, according to the company.
The remaining shares will be subscribed by no more than nine investors and proceeds will be mainly used for investment, development and operations, the company said.
"This could strengthen the company's core competitiveness and ensure a sustainable development of the company by facilitating the upgrading and adjustment of the production structure," said Li Guorui, the company's chairman, in the statement.
The Wall Street Journal reported that Li said yesterday profit for this year will grow robustly thanks to the government's massive investment in infrastructure construction. The company predicted in January that net income in 2009 jumped over 50 percent from 3.64 billion yuan a year earlier.
The share placement is subject to the approval of shareholders and relevant government authorities.
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