Li Ka-shing

China Railway secures two anchor investors

PUBLISHED : Thursday, 06 December, 2007, 12:00am
UPDATED : Thursday, 06 December, 2007, 12:00am


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Li Ka Shing Foundation and Chow Tai Fook Nominee have secured positions as anchor investors in China Railway Group's HK$19.2 billion initial public offering, market sources said.

They will invest a combined sum of less than US$80 million.

Nine cornerstone investors including China Life Insurance, Singapore's GIC, Rocket Capital, Kerry Holdings, Sun Hung Kai Properties, Henderson Land Development, Och Ziff, Wharf (Holdings) and China Investment Corp had earlier taken up a HK$3.2 billion chunk of the offering.

Cornerstone investors cannot sell their shares within a year of the offering while anchor investors, who are not subject to a lock-up period, can sell their shares immediately.

China Railway, the world's third-biggest construction contractor, fixed the price of its H-share offering at the high end of HK$5.78 after marketing the deal at between HK$5.03 and HK$5.78.

The company is selling 3.326 billion H shares. The retail tranche of the offering was more than 208 times oversubscribed, leading to its being increased to 25 per cent from 10 per cent.

The stock also drew strong demand from institutions, which submitted more than US$60 billion worth of orders.

The shares will make their trading debut in Hong Kong tomorrow.