Chinese shipbuilder launches IPO to raise $1b
Yangzijiang Shipbuilding Holdings is offering 993,197,000 shares at 95 cents each - 19,864,000 for public offer in Singapore and 973,333,000 for international placement. The offer price of 95 cents will raise about $943.5 million.
Based in Jiangyin city in Jiangsu province, Yangzijiang produces a wide range of vessels, including commercial craft, bulk carriers and chemical tankers.
It sells its products in China and in countries including Germany, Britain and Singapore.
The company's shipyard spans 200,000 sq m, but Yangzijiang wants to build a new yard covering 793,000 sq m, including a dry dock.
The IPO's net proceeds - about $602 million - will go towards repaying loans, acquiring part of another shipbuilder, working capital for the new yard and other corporate functions.
Yangzijiang recorded revenue of 2.3 billion yuan (S$450.8 million) last year and earnings of 453 million yuan.
Its revenue has grown at a compounded annual rate of about 53 per cent from 2004 to last year.
As at Dec 31 last year, the company's aggregate order book amounted to 21.5 billion yuan for vessels to be delivered between this year and 2010.
The company's revenue is likely to rise with new orders worth 15.2 billion yuan expected to come in.
Executive chairman Ren Yuanlin said: 'Over the years, we have established ourselves as a major shipbuilder in (China)...
'Our commitment to quality and timely delivery has enabled us to build up a strong customer base of major shipowners.
'Our listing will provide us with the funds to propel our company to the next stage of growth.'
The company aims to expand by building larger vessels and diversifying into offshore craft.
The offering closes at noon on Thursday.
The final offer price will be determined after a book-building process.
Trading is expected to start on Wednesday next week.
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8:05 PM
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