Share Offer Will Fund Shipping Expansion

Thursday, September 27, 2007
China State Shipbuilding Co. said it has completed a private offer of $1.6b worth of new shares to strategic investors to fund expansion.

The company sold 400 million new shares to eight investors including its state-owned parent at $3.99 a piece, less than one-eighth of its current share price, according to a filing to the Shanghai Stock Exchange.

The share placement was initially announced in January by Hudong Heavy Machinery Co, which in August changed its name to China State Shipbuilding. In January, its shares were quoted around $3.99. But the stock has since rocketed, becoming the most expensive on the mainland market, amid fund buying and an injection of assets by its parent. The company has said it will acquire more assets from its parent.

In yesterday's trading, China State Shipbuilding fell 0.38 percent to close at $33.10, coming off an intraday all-time high of $34.07.

From the private offer, China State Shipbuilding received $399.2m in cash and $1.2b in shipbuilding assets from its parent.

Other investors include top Chinese steel maker Baosteel Group Corp., China National Offshore Oil Corp., China Life Insurance (Group) Co. and state financial conglomerate CITIC Group. The new shares are subject to a 36-month locking period.

A 165 percent surge in first-half orders has helped China's shipbuilding industry overtake South Korea's as the world's largest in terms of deadweight tonnage.

[Source: Shanghai Daily]

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Patrol Boats

S.Korean Ferry Master Faces Investigation

The captain of the South Korean ferry that capsized off the southwest coast was facing a criminal investigation on Thursday, an official said, amid unconfirmed

Divers Struggle in Search for Ferry Survivors

Rescuers struggle with waves, murky waters; Captain faces charge of abandoning South Korean ferry. About 290 people still missing, many of them teenagers. Rescuers

China denies naval snub for Japan over fleet review

China's navy on Tuesday denied, in a roundabout way, that it snubbed Japan by not inviting it to join in a naval fleet review as part of an international symposium,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2103 sec (5 req/sec)