China Railway eyes IPO
China Railway Construction Corp. hired Citic Securities Co., Citigroup Inc. and Macquarie Bank Ltd. to prepare it for a $2 billion initial public offering, said three people with direct knowledge of the decision, Bloomberg reports according to RZD-Partner.
The former railway arm of the People's Liberation Army may sell shares in Shanghai and Hong Kong as early as by year-end, said two of the people, declining to be identified before an official announcement. No final decision has been made on the size and venue of the offering, they said. China Railway Construction is seeking funds to help it compete for contracts as the government expands underdeveloped transport networks. Bigger rival China Railway Engineering Group Co. is planning a $1.5 billion IPO, people familiar with the deal said in January. Capital is a key element in this industry,'' said Jimmy Lam, a Hong Kong-based analyst at BOC The Chinese government may spend $162 billion to build 17,000 kilometers (10,565 miles) of new railway lines in the five years to 2010, according to a November report by UBS AG. The expansion is part of a plan to invest 3.8 trillion yuan in China's overall transportation network.
The former railway arm of the People's Liberation Army may sell shares in Shanghai and Hong Kong as early as by year-end, said two of the people, declining to be identified before an official announcement. No final decision has been made on the size and venue of the offering, they said. China Railway Construction is seeking funds to help it compete for contracts as the government expands underdeveloped transport networks. Bigger rival China Railway Engineering Group Co. is planning a $1.5 billion IPO, people familiar with the deal said in January. Capital is a key element in this industry,'' said Jimmy Lam, a Hong Kong-based analyst at BOC The Chinese government may spend $162 billion to build 17,000 kilometers (10,565 miles) of new railway lines in the five years to 2010, according to a November report by UBS AG. The expansion is part of a plan to invest 3.8 trillion yuan in China's overall transportation network.
