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Cosco Shipping

Shipping giant's A-share IPO raises 15b yuan

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Denise Tsang

China Cosco Holdings, the mainland's biggest shipping company, has raised 15.12 billion yuan from its Shanghai listing after pricing the shares at the top end of the indicative range.

The company said in a Shanghai stock exchange announcement last night that it fixed the price of its 1.78 billion A shares at 8.48 yuan each, the top of a range that started at 7.60 yuan.

The price, below the firm's H shares that closed at HK$10.88 on Monday, puts the price-earnings ratio of the A shares at as much as 98.67 times.

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As only 0.56 per cent of the retail orders were fulfilled, falling short of the 2 per cent threshold, the firm increased the retail tranche by 5 per cent of the total offering to 50 per cent.

The retail ratio was raised to 0.617 per cent, compared with 0.749 per cent for institutional investors. Subscriptions by institutional investors locked up 404 billion yuan of funds.

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The company said 19 strategic investors subscribed to 535 million A shares, or 30 per cent of the shares on offer, for 4.53 billion yuan.

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