Sinotrans Shipping Ltd is expected to raise as much as HK$11.45 billion (US$1.47 billion) in a Hong Kong initial public offering this month, Logistics Week reported.
Sinotrans Shipping plans to expand its container transportation capacity from the present 2,230 TEU to 5,500 TEU in the next five years, and dry-bulk cargo capacity from 1.3 million tons to 4-5 million tons, and oil tanker capacity from 832,000 tons to 1.2-1.8 million tons, the report added.
The wholly-owned dry-bulk arm of Sinotrans Group plans to issue 1.4 billion new shares to investors, the report said.
After the public listing, Sinotrans Group will remain the largest share holder of Sinotrans Shipping by holding 65 per cent, the report said.
Half of the funds raised will be used to expand the fleet and a quarter will be used to buy shipping companies, while the rest will be taken as repayment of bank loans as well as for use as a general operations fund, the report said.
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