CSSC Mulls $280 million Hong Kong IPO

The 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.

CSSC (Hong Kong) Shipping, the leasing company, is issuing 153.4 million shares at an indicative price range of HK$1.34 to HK$1.42. The minimum investment is HK$2,868.62 per lot of 2,000 shares.

CSSC (Hong Kong) Shipping owns 100 vessels with a total value of $5.6 billion.

According to Caixin, CSSC will remain the largest shareholder of the Hong Kong unit with 75% after the listing.

The report said that 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, it said.

CSSC (Hong Kong) Shipping Company  was founded in 2012 and is based in Central, Hong Kong with additional office in Shanghai, China.