Unit of State Shipbuilder to Raise $280 Million in Hong Kong Listing

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By Zhou Wenmin and Han Wei / May 28, 2019 05:10 AM / Business & Tech

Photo: VCG

A ship-leasing unit of China’s state-owned shipbuilder China State Shipbuilding Corp. (CSSC) plans to raise as much as HK$2.2 billion ($280 million) in an initial public offering in Hong Kong.

The Hong Kong-based CSSC (Hong Kong) Shipping Co. Ltd. will issue 1.5 billion shares at HK$1.34 to HK$1.42 per share, according to a company filing Monday.

The company is set to price the deal on June 5 and start trading on the Hong Kong stock exchange June 17. CSSC will remain the largest shareholder of the Hong Kong unit with 75% after the listing, said the company.

CSSC (Hong Kong) Shipping has secured four cornerstone investors that subscribed for a combined 1.25 billion shares. The investors are China Reinsurance Corp., China Shipping Container Lines Co. Ltd., Wison Engineering Services Co. Ltd. and First Automobile Finance Co. Ltd.

According to the prospectus, CSSC (Hong Kong) Shipping owns 100 vessels with a total value of $5.6 billion. In 2018, the company’s revenue rose 58% to HK$2.1 billion. Profit grew 17% to HK$707 million.

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