Companies

China Shipbuilding to raise $2.6b via placement

(Agencies)
Updated: 2010-07-16 11:14

Major Chinese ship builder China Shipbuilding Industry Co said on Friday it planned to raise 17.3 billion yuan ($2.55 billion) via a share placement to buy assets from its parent company.

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China Shipbuilding will issue 2.5 billion new shares to its state parent and six other companies at 6.93 yuan per share, it said in a statement, marking a 7.6 percent discount to its last close on July 5.

Proceeds will be used to buy shipping assets of similar value, it said.

The firm says it expects to make 4.2 billion yuan in net profit and 52.3 billion yuan in revenue for 2010 after the transaction. At the end of last year, the listed unit made 18.6 billion yuan in revenue and 1.5 billion yuan in net profit.

China Shipbuilding, controlled by state-owned China Shipbuilding Industry Group, debuted on the Shanghai Stock Exchange last year and said it would use the IPO proceeds to expand production capacity and supplement working capital.