H share to list in Shanghai

H share Anhui Expressway will issue up to 250 million A shares in an initial public offering on the Shanghai stock market to finance the acquisition of an expressway section that helps link China's eastern coast and the inland west.

The company will use the proceeds to acquire the entire interest in Lianhuo Expressway (Anhui Section) for 1.18 billion yuan (about HK$1.1 billion) from parent Anhui Expressway Holding.

Anhui is the second toll-road H share after Zhejiang Expressway, to push ahead with an A-share listing debut since Beijing lifted a restriction on Hong Kong-listed H shares issuing more than one class of shares last year.

The parent owns and operates the 54.11 kilometre dual two-lane Anhui province-section of the 4,800 km Lianhuo Expressway. Assets include the infrastructure facilities of the section and the related land-use rights for 30 years, starting from July next year.

The H share will also be granted the right to collect toll fees.

Lianhuo Expressway links Lianyungang port city in Jiangsu province to Huo'erguosi city on the Sino-Russian border in Xinjiang autonomous region.