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China Railway Construction's Hong Kong, Shanghai IPOs could raise total US$5.4 billion

China Railway Construction's Hong Kong, Shanghai IPOs could raise total US$5.4 billion

Major contractor China Railway Construction Corp. began subscriptions Friday for an initial public offering in Hong Kong that along with a Shanghai share offering is expected to raise up to US$5.4 billion (euro3.6 billion).
The state-owned company, responsible for building more than half the country's modern railways, raised 22.3 billion yuan (US$3.1 billion; euro2.1 billion) in its IPO on the Shanghai Stock Exchange earlier this week.
The company's shares begin trading in Shanghai on March 10.
If priced at 10.70 Hong Kong dollars (US$1.37; euro.91) each _ the top of the Hong Kong IPO's price range _ the 1.706 billion shares in the second offering could raise about HK$18.3 billion (US$2.34 billion; euro1.6 billion).
That would bring the total raised in the dual IPOs to nearly US$5.4 billion.
China Railway Construction said it would use 80 percent of the funds raised in the Hong Kong offering for equipment purchases, with the remainder to be used for construction of a cement plant in Nigeria and for working capital.


Updated : 2021-05-11 07:24 GMT+08:00