China Railway raises $3 billion on record bookings
China Railway Group raised 22.44 billion yuan from its initial public offering as it attracted a record 450 billion dollars in bookings.
By Agencies |
SHANGHAI: China Railway Group raised 22.44 billion yuan (three billion dollars) from its initial public offering as it attracted a record 450 billion dollars in bookings, state press reported Friday.
China's largest construction firm sold 4.675 billion A-shares on the Shanghai Stock Exchange, after pricing the stock at 4.80 yuan each, the official China Securities Journal said.
The stock price is 26.7 times 2007 projected net profits, based on Chinese accounting standards, the company said in a statement to the Shanghai Stock Exchange late Thursday.
Up to 1.4 billion A-shares, or about 30 percent of the issue, will be sold to institutional investors, with the remainder earmarked for retail investors.
The fund-raising exercise booked a combined 3.383 trillion yuan for both institutional and retail share applications, exceeding the 3.378 trillion yuan by PetroChina's IPO last month, according to the newspaper.
The international tranche of China Railway's IPO in Hong Kong has been more than 15 times oversubscribed, according to analysts.
It will offer 3.326 billion H-shares at 5.03-5.78 Hong Kong dollars (64-74 US cents), raising up to 19 billion Hong Kong dollars.
Of the total Hong Kong offering, 10 percent will be allocated to retail investors, while the remaining 90 percent will go to institutions.
The country's largest railway and tunnel contractor is expected to commence trading in Hong Kong on December 7 and in Shanghai on December 3.
China's largest construction firm sold 4.675 billion A-shares on the Shanghai Stock Exchange, after pricing the stock at 4.80 yuan each, the official China Securities Journal said.
The stock price is 26.7 times 2007 projected net profits, based on Chinese accounting standards, the company said in a statement to the Shanghai Stock Exchange late Thursday.
Up to 1.4 billion A-shares, or about 30 percent of the issue, will be sold to institutional investors, with the remainder earmarked for retail investors.
The fund-raising exercise booked a combined 3.383 trillion yuan for both institutional and retail share applications, exceeding the 3.378 trillion yuan by PetroChina's IPO last month, according to the newspaper.
The international tranche of China Railway's IPO in Hong Kong has been more than 15 times oversubscribed, according to analysts.
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It will offer 3.326 billion H-shares at 5.03-5.78 Hong Kong dollars (64-74 US cents), raising up to 19 billion Hong Kong dollars.
Of the total Hong Kong offering, 10 percent will be allocated to retail investors, while the remaining 90 percent will go to institutions.
The country's largest railway and tunnel contractor is expected to commence trading in Hong Kong on December 7 and in Shanghai on December 3.
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