China Railway Construction Corporation Limited (CRCC), one of
the nation's largest road project contractors, is planning to issue
2.8 billion shares in Initial Public Offering (IPO) on Shanghai
bourse.
China Securities Regulatory Commission (CSRC) would consider the
company's application on January 23. The company is the largest
contractor of the construction of the Beijing-Shanghai express
railway.
According to the pre-released prospectus, the capital raised
from the IPO would be used to procure construction facilities,
expand the manufacturing capacity of mechanic equipments, invest in
properties and railways.
Citic Securities would lead the underwriting. The company is
also actively preparing to get listed in Hong Kong market.
The CRCC, which established its name from building the
Qinghai-Tibetan Railway, Shanghai Meglev train, Beijing-Kowloon
Railway and the western railway across Hong Kong, took the largest
share of 40.3 percent or 33.74 billion yuan (US$4.64 billion)
through its two subsidiaries in the bidding on the civil
engineering of China's express railway linking Beijing and
Shanghai.
As the other major construction giant, China Railway Group
Limited, has seen share price jump by 50 percent since its IPO in
November last year, analysts expected the CRCC issue would also
score considerable price rises with its net profits expected to
reach 3.1 billion yuan in 2007.
(Xinhua News Agency January 20, 2008)
