Railway's firm IPO on track to seek nod
Source: Xinhua |
March 3, 2010, Wednesday
|
Print Edition
Print Edition
THE Beijing-Shanghai High-Speed Railway Co will raise 30 billion yuan to 50 billion yuan (US$4.4 billion to US$7.3 billion) through an initial public offering this year.
The Ministry of Railways, owner of the company, has submitted the IPO proposal to the Ministry of Finance and other relevant government departments.
The IPO has to be approved by the State Council, China's Cabinet, since the high-speed rail is still under construction and the company has not made a profit for three consecutive years, the ministry said.
Liu Sheng, an analyst at Essence Securities, said the IPO would ease the fundraising pressure for the 1,318-kilometer rail project, while the impact on the general market would be largely neutral.
The railway ministry-owned China Railway Investment Corp, holding 56.2 percent of the project, planned to sell a 4.5 percent stake to raise 6 million yuan for other projects.
The Ministry of Railways, owner of the company, has submitted the IPO proposal to the Ministry of Finance and other relevant government departments.
The IPO has to be approved by the State Council, China's Cabinet, since the high-speed rail is still under construction and the company has not made a profit for three consecutive years, the ministry said.
Liu Sheng, an analyst at Essence Securities, said the IPO would ease the fundraising pressure for the 1,318-kilometer rail project, while the impact on the general market would be largely neutral.
The railway ministry-owned China Railway Investment Corp, holding 56.2 percent of the project, planned to sell a 4.5 percent stake to raise 6 million yuan for other projects.
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