Qingdao Port is looking to raise RMB8.48bn ($1.28bn) from its proposed IPO at Shanghai Stock Exchange (SSE), according to a prospectus released by the company.
Qingdao Port will use RMB5bn for the development of an oil storage project and new berths at Dongjiakou port area, RMB1bn to purchase new equipment, and the remaining funds for general working capital.
The company believes the upgrade of its oil terminal infrastructure will provide great support for the fast growing oil import volumes by the local refineries in Shandong.
The IPO is still waiting for final approval from China Securities Regulatory Commission. Following the IPO, Qingdao Port will be listed on both SSE and Hong Kong Stock Exchange (HKSE).
In January, Cosco Shipping Ports increased its shareholding in Qingdao Port to 18.41% from 2% through a share acquisition deal, and became the second largest shareholder in the port operator.
Qingdao Port’s neighboring Weihai Port is also looking to list its shares on a domestic stock exchange. The port operator started preliminary preparation works for the IPO in June.