Rongsheng may list in HK in November
By Ding Yining |
00:14 UTC+8 October 16, 2010
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Print Edition
Print Edition
CHINA'S largest privately held shipyard may go public in Hong Kong as early as next month if the bourse approves its application.
Rongsheng Heavy Industries Ltd, which is based in Jiangsu Province, hopes to raise between US$1.5 billion and US$2 billion, Caixin Media reported, citing an unidentified source familiar with the matter.
JPMorgan Chase, Morgan Stanley, Deutsche Bank, CCB International and the Bank of China International will underwrite the deal, according to the magazine's website.
"The IPO application was filed some time ago and the listing should be completed in the near future," a source who refused to be identified confirmed to Shanghai Daily yesterday.
The number of new firms listing on the Hong Kong market from Chinese mainland this year totaled 34 at the end of September, according to research firm Zero2IPO Center. They raised US$14.49 billion in the nine months.
The listing would come when Chinese shipyards are enjoying a resurgence of orders after the financial crisis.
New orders in the first eight months quadrupled from the same period last year and stood at 44.5 deadweight tons. The backlog of orders totaling 194 million DWT in that period were up 3.1 percent from the end of last year.
Last month, Brazilian mining giant Vale inked an agreement to buy 12 vessels for US$1.6 billion, each with 400,000 tons of capacity, from Rongsheng with loans from the Export-Import Bank of China and Bank of China.
The Baltic Dry Index, the main gauge of dry bulk freight, gained for a third day to 2,769 points on Thursday, as demand for raw materials such as iron ore and coal strengthened.
Rongsheng had planned to list in 2008, but the financial crisis hurt earnings and delayed listing plans.
Sales of the shipyard totaled 10.2 billion yuan (US$1.5 billion) in 2009, and the company hopes to raise annual sales to more than 100 billion yuan in the next five years, Rongsheng President Chen Qiang said earlier this year.
"The market has already seen a rebound from the bottom, but it still takes shipyards a couple of years to regain their prime," Citic Securities analyst Guo Yaling said.
Rongsheng Heavy Industries Ltd, which is based in Jiangsu Province, hopes to raise between US$1.5 billion and US$2 billion, Caixin Media reported, citing an unidentified source familiar with the matter.
JPMorgan Chase, Morgan Stanley, Deutsche Bank, CCB International and the Bank of China International will underwrite the deal, according to the magazine's website.
"The IPO application was filed some time ago and the listing should be completed in the near future," a source who refused to be identified confirmed to Shanghai Daily yesterday.
The number of new firms listing on the Hong Kong market from Chinese mainland this year totaled 34 at the end of September, according to research firm Zero2IPO Center. They raised US$14.49 billion in the nine months.
The listing would come when Chinese shipyards are enjoying a resurgence of orders after the financial crisis.
New orders in the first eight months quadrupled from the same period last year and stood at 44.5 deadweight tons. The backlog of orders totaling 194 million DWT in that period were up 3.1 percent from the end of last year.
Last month, Brazilian mining giant Vale inked an agreement to buy 12 vessels for US$1.6 billion, each with 400,000 tons of capacity, from Rongsheng with loans from the Export-Import Bank of China and Bank of China.
The Baltic Dry Index, the main gauge of dry bulk freight, gained for a third day to 2,769 points on Thursday, as demand for raw materials such as iron ore and coal strengthened.
Rongsheng had planned to list in 2008, but the financial crisis hurt earnings and delayed listing plans.
Sales of the shipyard totaled 10.2 billion yuan (US$1.5 billion) in 2009, and the company hopes to raise annual sales to more than 100 billion yuan in the next five years, Rongsheng President Chen Qiang said earlier this year.
"The market has already seen a rebound from the bottom, but it still takes shipyards a couple of years to regain their prime," Citic Securities analyst Guo Yaling said.
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