China's Jiangsu Eastern Shipyard goes ahead with Singapore IPO
China's Jiangsu Eastern Shipyard will push ahead with its Singapore initial public offering (IPO) of up to US$65mil in the second quarter, despite tumbling stock markets, a company official said.
The company's planned listing would fund the company's expansion efforts, as it looked to start building very large crude carriers (VLCCs) over the next 18–24 months, the official said yesterday. The company currently builds medium-sized heavy oil vessels of up to 80,000 deadweight tonnes (dwt).
“We need the financial muscle to raise our manufacturing capacity,” the official told Reuters via telephone. “Our orders are increasing, especially from Germany. We target to kick off the manufacturing of VLCCs.”
The official said the firm expected its manufacturing capacity to grow by 30% to around 400,000 dwt this year and 500,000 dwt by 2010.
Jiangsu Shipyard, located on the east coast of China, typically took about a year to complete a new-build order, the official said.
Oversea-Chinese Banking Corp, the smallest of Singapore's three banks, is expected to handle the IPO.
Singapore banking sources said that typically shipyards looking to list in the city-state would likely raise between S$50mil and S$300mil. “This is the kind of range you would be looking at realistically, although the individual companies may have higher targets,” thesource said.
China is the world's third largest builder of ships, behind South Korea and Japan, and Beijing aims to overtake its Asian rivals within two years.
On Friday, China's Yangzijiang Shipbuilding Ltd announced plans to start marketing a Singapore IPO of up to US$800mil this month. – Reuters
The company's planned listing would fund the company's expansion efforts, as it looked to start building very large crude carriers (VLCCs) over the next 18–24 months, the official said yesterday. The company currently builds medium-sized heavy oil vessels of up to 80,000 deadweight tonnes (dwt).
“We need the financial muscle to raise our manufacturing capacity,” the official told Reuters via telephone. “Our orders are increasing, especially from Germany. We target to kick off the manufacturing of VLCCs.”
The official said the firm expected its manufacturing capacity to grow by 30% to around 400,000 dwt this year and 500,000 dwt by 2010.
Jiangsu Shipyard, located on the east coast of China, typically took about a year to complete a new-build order, the official said.
Oversea-Chinese Banking Corp, the smallest of Singapore's three banks, is expected to handle the IPO.
Singapore banking sources said that typically shipyards looking to list in the city-state would likely raise between S$50mil and S$300mil. “This is the kind of range you would be looking at realistically, although the individual companies may have higher targets,” thesource said.
China is the world's third largest builder of ships, behind South Korea and Japan, and Beijing aims to overtake its Asian rivals within two years.
On Friday, China's Yangzijiang Shipbuilding Ltd announced plans to start marketing a Singapore IPO of up to US$800mil this month. – Reuters
