CIMC Plans $928 Million Share Sale
The world’s biggest maker of shipping containers China International Marine Containers Group Co. (CIMC) plans to raise 6 billion yuan ($928 million) selling shares to fund an expansion of a business park in Shenzhen and other assets, reports Bloomberg.
CIMC will sell yuan-denominated stock to a maximum of 10 investors, it said in a filing April 9.
CIMC’s expansion of diversified businesses comes amid a global slump in container-shipping rates and overcapacity in the sea-freight market. Shipping lines worldwide have been selling assets and exploring consolidations to stem losses as the fees they charge customers plunged after years of slowing trade and overcapacity.
The company said the raised fund will be used as additional capital investment in the areas from R&D, production, supply chain, marketing to global expansion to better promote the business development of the company and cope with the industry cyclical fluctuations.
CIMC went public in 1993 and has been listed in Shenzhen Stock Exchange since 1994. CIMC started to run as the group structure in 1995. CIMC has more than 30 subsidiaries around China and all over the world and has over 30,000 employees.
The core business of CIMC is container manufacturing. It has over 20 production bases throughout South, East and North of China. The products range from dry van, reefer to tank and various special containers.
