Top Biz News
China Railway Construction plans $1.2b share placement
(Agencies)
Updated: 2010-03-04 14:37
 |
Large Medium Small |
To issue up to 1.035 billion yuan?Shanghai A shares in placement
SHANGHAI: China Railway Construction Corp?plans to conduct a private placement of shares to raise up to 8 billion yuan ($1.2 billion), mainly to improve its competitiveness.
The infrastructure construction group will issue up to 1.035 billion yuan-denominated A shares in Shanghai in the share placement, up to half of which will be issued to its parent, it said in a prospectus published on Thursday in the official Shanghai Securities News.
Trading in the company's shares will resume on Thursday, both in Shanghai and Hong Kong. Trading has been suspended since Monday pending the company's announcement on the placement.
China Railway Construction raised a total of nearly 40 billion yuan via a dual listing in Shanghai and Hong Kong in the first half of 2008.
| ||||
Now the parent wants to transfer the nearly completed projects to the listed unit to help enhance the unit's competitiveness, China Railway Construction said in the prospectus.
In addition, China Railway Construction aims to sell shares to nine other institutional investors in the private placement to finance a few railway and road projects that are under construction, and use a small amount of the proceeds to supplement working capital and pay back bank loans, it said.
The company planned to sell the placement shares at 7.74 yuan per share. Its Shanghai A shares last traded at 8.66 yuan before a suspension on Monday.
The placement plan, pending shareholder approval, would be implemented within 12 months after the approval, it said.
