China Railway Group to raise $3 bln in Shanghai IPO

Mon Nov 19, 2007 5:48am EST

(For expanded IPO diaries, click <HK/IPOMENU> and <CN/IPOMENU>)

HONG KONG Nov 19 (Reuters) - China Railway Group, the world's third-largest construction contractor by revenue, plans to raise up to $3 billion from the Shanghai portion of its IPO, which will also take place in Hong Kong, sources familiar with the deal said on Monday.

The firm is offering 4.675 billion new A shares, or 26.75 percent of its enlarged share capital, at a price of range of 4.0 to 4.8 yuan per share, the sources said.

The price range for the Hong Kong portion will be fixed later today and could be higher than the domestic A-share offering price range. State-run China Railway, the country's largest construction company, plans to sell 3.326 billion shares H shares in Hong Kong.

The Shanghai listing is expected on Dec. 3 while the Hong Kong listing is slated for Dec. 7, the sources said.

The Hong Kong and Shanghai listings will be handled by BOC International and UBS (UBSN.VX)(UBS.N), while JP Morgan (JPM.N) is also helping to underwrite the Hong Kong portion of the IPO.

(US$1=HK$7.8=7.4303 yuan)

(Reporting by Kennix Chim; Editing by Anne Marie Roantree)

((kennix.chim@reuters.com; +852 2843 6313; Reuters Messaging: kennix.chim.reuters.com@reuters.net)) Keywords: CHINARAILWAY IPO/

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nHKG184976

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.