China Shipbuilding Industry Corp (CSIC), one of the nation's leading shipbuilding groups, will seek an initial public offering (IPO) in 2007, according to sources close to the State-owned Assets Supervision and Administration Commission (SASAC).

Headquartered in Beijing, CSIC is reportedly planning a new issue of around 1.6 billion A shares to raise between 6 and 7 billion yuan, the sources said.

CSIC is undertaking a major restructuring effort to merge its 16 subsidiaries in August to form a more integrated company, to be called China Shipbuilding Industry Co Ltd, before it applies for an IPO on the Shanghai Stock Exchange in December, said the source.