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Train crash hurts CSR Corp's plan to raise 11b yuan
By Richard Fu |
August 3, 2011, Wednesday
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Online Edition
Online Edition
CHINA'S largest train maker, CSR Corp, has delayed a shareholder voting on its 11 billion yuan (US$1.7 billion) fundraising plan following the fatal train crash in Wenzhou on July 23.
CSR said it needs more time to discuss with investors on the industry's prospect after the deadly accident as well as market conditions affected by the volatility of US treasury bonds, according to its filing to the Shanghai Stock Exchange today.
The company said in June it would sell 1.83 billion new shares at 6.02 yuan each in a private placement to its state-owned parent and the National Social Security Fund. CSR fell 0.91 percent to 5.44 yuan today.
"CSR has to cut its issue price, which for sure should be lower than its current share price," said Nanjing-based Huatai Securities strategist Chen Huiqin.
CSR has postponed the shareholder meeting to September 29, instead of this Friday as originally planned.
The company's shares have plunged 18 percent since the July 23 train crash, which killed at least 40 people, on concerns that the accident would slow China's railway expansion.
CSR said it needs more time to discuss with investors on the industry's prospect after the deadly accident as well as market conditions affected by the volatility of US treasury bonds, according to its filing to the Shanghai Stock Exchange today.
The company said in June it would sell 1.83 billion new shares at 6.02 yuan each in a private placement to its state-owned parent and the National Social Security Fund. CSR fell 0.91 percent to 5.44 yuan today.
"CSR has to cut its issue price, which for sure should be lower than its current share price," said Nanjing-based Huatai Securities strategist Chen Huiqin.
CSR has postponed the shareholder meeting to September 29, instead of this Friday as originally planned.
The company's shares have plunged 18 percent since the July 23 train crash, which killed at least 40 people, on concerns that the accident would slow China's railway expansion.
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