China Port Builder IPO to Raise $2.1 Billion
China's top port builder, China Communications Construction Co. (CCCC), plans to raise up to US$2.1 billion in an IPO after setting a price range of HK$3.40-HK$4.60 per share for a December listing in Hong Kong, a source familiar with the deal said on Monday. The state-owned company, which will kick off a formal marketing roadshow on Nov. 28, is offering 3.5 billion shares at a price range representing 13 to 18 times its 2006 prospective price to earnings multiple. Texas-based Fluor Corp. (FLR.N: Quote, Profile, Research), a U.S. engineering and construction company, trades at 32 times 2006 earnings. Hong Kong's stock market, which has seen a flood of new listings this year, is also awaiting IPOs from hotel operator Shanghai Jin Jiang International Hotels, China Communications Services and China Coal Energy that could raise more than a combined US$2 billion by the end of the year. China Communications Construction's businesses range from infrastructure design and construction to dredging and port machinery manufacturing. The IPO proceeds will help it expand its business to new engines, including railway construction and heavy marine machinery manufacturing. The retail portion of its Hong Kong offering will run from Dec. 1 to Dec. 6, with final pricing on Dec. 9. A trading debut is set for Dec. 15. The company plans to earmark $240 million worth in shares to three investors, including China Life Group, New World Development (0017.HK: Quote, Profile, Research) chairman Cheng Yu-tung and Singapore's GIC Direct Investments, sources told Reuters on Friday. The offering is being sponsored by UBS (UBSN.VX: Quote, Profile, Research), Merrill Lynch (MER.N: Quote, Profile, Research) and BOC International.
CCCC had originally planned to list simultaneously in Hong Kong and Shanghai, which would make it only the second company to do so after Industrial & Commercial Bank of China (1398.HK: Quote, Profile, Research) (601398.SS: Quote, Profile, Research), but technical issues thwarted the plan. There is no clear timeline for when it will raise money in Shanghai.
Source: Reuters.comLabels: China, Construction, FLR, Innitial public offering, Investments, MER, Stock, UBSN
posted by Stock Administrator @ 12:27 AM
China Port Builder IPO to Raise $2.1 Billion
China's top port builder, China Communications Construction Co. (CCCC), plans to raise up to US$2.1 billion in an IPO after setting a price range of HK$3.40-HK$4.60 per share for a December listing in Hong Kong, a source familiar with the deal said on Monday. The state-owned company, which will kick off a formal marketing roadshow on Nov. 28, is offering 3.5 billion shares at a price range representing 13 to 18 times its 2006 prospective price to earnings multiple. Texas-based Fluor Corp. (FLR.N: Quote, Profile, Research), a U.S. engineering and construction company, trades at 32 times 2006 earnings. Hong Kong's stock market, which has seen a flood of new listings this year, is also awaiting IPOs from hotel operator Shanghai Jin Jiang International Hotels, China Communications Services and China Coal Energy that could raise more than a combined US$2 billion by the end of the year. China Communications Construction's businesses range from infrastructure design and construction to dredging and port machinery manufacturing. The IPO proceeds will help it expand its business to new engines, including railway construction and heavy marine machinery manufacturing. The retail portion of its Hong Kong offering will run from Dec. 1 to Dec. 6, with final pricing on Dec. 9. A trading debut is set for Dec. 15. The company plans to earmark $240 million worth in shares to three investors, including China Life Group, New World Development (0017.HK: Quote, Profile, Research) chairman Cheng Yu-tung and Singapore's GIC Direct Investments, sources told Reuters on Friday. The offering is being sponsored by UBS (UBSN.VX: Quote, Profile, Research), Merrill Lynch (MER.N: Quote, Profile, Research) and BOC International.
CCCC had originally planned to list simultaneously in Hong Kong and Shanghai, which would make it only the second company to do so after Industrial & Commercial Bank of China (1398.HK: Quote, Profile, Research) (601398.SS: Quote, Profile, Research), but technical issues thwarted the plan. There is no clear timeline for when it will raise money in Shanghai.
Source: Reuters.com
CCCC had originally planned to list simultaneously in Hong Kong and Shanghai, which would make it only the second company to do so after Industrial & Commercial Bank of China (1398.HK: Quote, Profile, Research) (601398.SS: Quote, Profile, Research), but technical issues thwarted the plan. There is no clear timeline for when it will raise money in Shanghai.
Source: Reuters.com
Labels: China, Construction, FLR, Innitial public offering, Investments, MER, Stock, UBSN
posted by Stock Administrator @ 12:27 AM
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