China Railway Construction Pricing At Top Of Range
February 27, 2008 by Douglas A. McIntyreChina Railway Construction Corp. announced that it intends to price its initial public offering at the high end of its range. At a price of 9.08 yuan ($1.27), the offering is valued at roughly $3.6 Billion for a Shanghai offering of 2.8 billion shares. It also plans to offer an additional 1.706 shares to trade in Hong Kong to be priced on March 6. Last week, we discussed the offering and mentioned that it could top the IPO of rival China Railway Group of $2.5 Billion in Hong Kong in late November 2007.
Many investors view this IPO as attractive due to the lack of competition in this market, strong earnings and the fact that the Chinese government allocated $175 Billion for railroad investment over the next five years. Trading on Shanghai is anticipated for March 10 and the Hong Kong listing is set for March 13.
Rachel Lopez
February 27, 2008
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