CSSC Shipping, the shipowning and leasing unit of China State Shipbuilding Corporation (CSSC), is looking to raise up to HK$2.18bn ($277.7m) via its IPO on the Hong Kong Stock Exchange in June.
According to the company’s IPO prospectus, it plans to issue 1.534bn new shares at an expected price of HK$1.34 – HK$1.42 with the final price to be confirmed on June 5. 90% of the shares will be offered globally and the remaining 10% will be a Hong Kong public offering.
CSSC Shipping plans to use 60% of the proceeds from the offering to finance the acquisition of 37 ships comprising three containerships, 12 bulk carriers, 14 tankers and eight special purpose carriers, and 30% of the proceeds will be used to support sale and leaseback projects in the clean energy sector including LNG and LPG units, while the remaining 10% will go to general corporate purposes.
This week, Chinese EPC service provider Wison Engineering Services entered into a cornerstone investment agreement to acquire $29.8n worth of new shares to be issued by CSSC Shipping.
The prospectus shows Cosco is also one of the cornerstone investors.
CSSC Shipping was established in 2012 and was the first shipowning unit set up by a Chinese shipyard. The company currently owns a fleet of over 60 ships.