Rizhao Port Jurong, a joint venture between China’s Rizhao Port and Singapore’s Jurong Port, is expected to start its initial public offering on the Hong Kong Stock Exchange on June 19.
The company plans to issue raise around HK$516m ($66m) in total through the offering of 400m new shares.
Rizhao Port announced the IPO plan for Rizhao Port Jurong (RPJ) last year as part of a plan to restructure RPJ into an operating platform for handling dry bulk cargoes, include woodchips and grain.
Rizhao Port believes the Hong Kong listing will accelerate the development of RPJ, facilitating the strategic transformation of the company and enhancing the overall financial performance of the group.
According to the company’s IPO propectus, around 90% of the proceeds from the IPO will be used for development of new berths at Rizhao Port to support future business growth and the remaining 10% will be used for general corporate purposes.
Rizhao Port Jurong was established by Rizhao Port (70%) and Singapore’s Jurong Port (30%) for cargo handling at Rizhao Port in March 2011.