Sinotrans, a unit of China's biggest freight-forwarding and logistics company Sinotrans, plans to put about 35 per cent of its shares on the block during its H-share initial public offering (IPO) next year, market sources said.
The IPO, to be followed by a debut on the SAR main board, will most likely happen in the first half of the year, the sources said.
The share sale is estimated to raise between US$300 million and US$500 million, which will be used to upgrade systems for managing cargo, bankers involved in the deal told Bloomberg yesterday.
Credit Suisse First Boston is sponsoring the listing, with Bank of China International also participating.
The listed vehicle will almost certainly include an international courier and freight-forwarding operation spanning the coastal regions and a 70 per cent stake in Shanghai-listed Sinotrans Air Transport Development.
Freight-forwarding agency business accounted for 33 per cent of Sinotrans's operating profit last year, shipping and international courier services made up 12 and 32 per cent respectively.
