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Chinese company to raise up to US$2 billion in Hong Kong IPO
[HONG KONG] A Chinese state-owned rail company is planning a US$2 billion listing on Hong Kong's stock exchange, a report said on Friday, in what will be the first major initial public offering by a Chinese company since the nation's stock market meltdown.
China Railway Signal and Communication Corp (CRSC), a provider of railway signalling products and services, hopes to list on the city's stock exchange in mid-August, according to the Wall Street Journal.
The Beijing-based company, in its prospectus to the Hong Kong stock exchange, said it is the largest rail transportation control system solution provider in the world in terms of revenue.
CRSC said it plans to take orders starting late July, after the city's stock exchange approved the listing on Thursday, but the scheduling of the IPO could change depending on the market, the Journal reported.
The news of the potentially two-billion dollar IPO comes as investors in China remain on edge after a month-long sell-off that saw shares plunge more than 30 per cent and billions wiped off valuations, despite news that China's economy grew more than expected in the second quarter.
Hong Kong had also been buffeted by the rout in China that spread into regional markets, as well as fears for Greece's future in the eurozone.
Last week, the Chinese government announced measures to curb the rout, including a police crackdown on short-selling and a ban on big shareholders and company executives from selling stock for six months.