|

Chinese Train Maker Chooses Banks to Help Launch Initial Public Offering

Chinese Train Maker Chooses Banks to Help Launch Initial Public OfferingChina’s second largest train maker China CNR Corp. was chosen China International Capital Corp., the UBS AG and the Macquarie Group Ltd. to work in their initial public offering in Hong Kong. The Shanghai listed China CNR is planning to raise around US$ 1.5 billion for the offering this year, and the company is still to file an application to the Hong Kong stock exchange.

The company is also seeking to gather funds as the government is planning to expand the largest high speed rail network in the world. The Beijing based company stated that on January 6 that it signed contracts worth more than 28 billion yuan to sell bullet trains to the State owned rail company. By selling stock in Hong Kong this will allow mainland listed companies the advantage of valuations that are higher than on the mainland. Larger competitors’ such as CSR Group is already trading in Hong Kong at 12.1 times its estimated earnings for 2014 and the Shanghai carries a multiple of 11.8.

The Chinese State owned asset regulator has already approved China CNR’s Hong Kong plan for listing in a statement but no further details were given. China Securities News has also reported that the company plans to list up to 1.8 billion H Shares or around 15 percent of their total shares in Hong Kong.



Comments are closed

The Contributor

Follow me on twitter: TriaSasin

    Connect with Jasmin:
  1. - Email: Click here

Have Your Say!

Where is your favorite holiday destination in SEA?

View Results

Loading ... Loading ...

  1. Etienne Ducrot: Hi, I’m interested to contact this Foundation. Do you know how? Thanks. Etienne
  2. Emma: Hi Jasmin, I’ve read your article about a new medical center opens in Nanshan at the end of this month....
  3. sherry lee: A simple story with great words…I love it.
  4. Evangeline: Awesome piece!
  5. Glenda: Hi there, I enjoy reading through your article post. I wanted to write a little comment to support you.