CSSC Shipping, the shipowning and leasing unit of China State Shipbuilding Corporation (CSSC), commenced its IPO on the Hong Kong Stock Exchange yesterday and the offering has fallen well short of target.
The company offered around 153m new shares at the IPO and about 17.54m shares, representing only 11.4% of the total offered shares, have been subscribed raising HK$1.97bn ($251m) for the company.
CSSC Shipping brought in cornerstone investors at the IPO including Cosco, Wison Engineering Services, China Reinsurance Group and FAW.
The company planned to use 60% of the proceeds from the IPO to finance the acquisition of ships, and 30% to support sale and leaseback projects in the clean energy sector while the remaining 10% will go to general corporate purposes.
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.