Chinese domestic container logistics operator Zhonggu Shipping is looking to list its 70% owned subsidiary Zhonggu Logistics on the Shanghai Stock Exchange, after the company terminated its listing on the National Equities Exchange and Quotations (NEEQ) in March last year.
According to the company’s prospectus for the IPO, it plans to issue 81.9m new shares which will account for 12% equity interest of the company, to raise about RMB2.398bn ($349m).
The company will use RMB1.38bn of the proceeds for the acquisition of new containers while the remaining RMB1.01bn will be used for the acquisition of containerships.
According to Alphaliner, Zhonggu Logistics is the 16th largest container shipping company in the world controlling a fleet of 97 ships with total capacity of 137,513 teu, with 34 ships in the fleet self-owned. It is now the second largest domestic container shipping company in China, following Antong Holdings.
Currently the company has two 1,140 teu ships and six 1,900 teu ships on order and the vessels are expected to join the company’s fleet this year and next year.