China's Qinhuangdao Port to bring in USD717 million in IPO
Qinhuangdao Port Co. is looking to raise as much as USD717 million in an initial public offering in Hong Kong. Qinhuangdao Port is China's largest coal port operator by capacity.
According to a report by the Wall Street Journal (WSJ), the port company will be selling 829.9 million shares, accounting for 16.5% of its enlarged share capital. Qinhuangdao will be pricing the offering at HKD5.25 to HKD6.70 per share (USX0.68 to USX0.86).
Qinhuangdao is controlled by the Hebei provincial government. It is expected to start trading in the Hong Kong Stock Exchange on December 12, the report said.
The Chinese coal port operator has received a total of USD240 million in cornerstone investments from seven investors, WSJ reported. These include Zhongrong Iternational Trust Co., China National Coal Group, China communications Construction Co., China Datang Group, China Guodian Corp. and Taiping General Insurance Co.
WSJ said that cornerstone investors commit to buying and holding stakes for a specific period of time once a company has listed.
Financial services companies China International Capital Group, Citigroup Inc., HSBC Holdings Plc, JP Morgan Chase & Co., UBS AG, China Merchants Securities and Bocom International will participate in the Hong Kong listing, the report said.
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