Sinotrans Shipping, a unit of state-owned Sinotrans Group, may spend US$3.5 billion in the next five years to boost capacity amid rising demand, according to a report by one of its listing sponsors.
Sinotrans Shipping operates 34 vessels, including 26 dry bulk carriers and three oil tankers, with a combined capacity of 2.16 million deadweight tonnes, according to a report by BOC International.
The firm also runs five container ships with capacity totalling 2,230 twenty-foot equivalent units (teu).
The company had placed orders for eight dry bulk vessels and one oil tanker with a combined capacity of 1.13 million dwt, as well as four container ships with an aggregate capacity of 3,388 teu, it said.
Dry bulk shipping and the oil tanker division accounted for 92.9 per cent of the company's turnover last year. The remainder was from the container ship business.
The company kicked off the pre-marketing of its upcoming US$1.3 billion initial public share offering on Monday, sources said. The road show for international investors will run from November 5 to 14.
Trading in the shares will start on November 23.