April 18, 2007 / 4:50 AM / 12 years ago

Yangzijiang shares soar up to 45 pct in S'pore debut

SINGAPORE, April 18 (Reuters) - Shares in Chinese shipbuilder Yangzijiang Shipbuilding Holdings Ltd. (YAZG.SI) — sold in Singapore’s biggest initial public offering this year — surged as much as 45 percent when they began trading on Wednesday.

The stock, which was priced at S$0.95 in the firm’s S$944 million ($624 million) IPO, opened at S$1.35 and climbed as high as S$1.38 on Wednesday morning.

The initial public offering of 993.2 million new shares was 39 times subscribed, the company said in a statement.

The deal was the largest IPO by a foreign company in Singapore after Thai Beverage PCL (TBEV.SI), which raised $875 million in May 2006.

Dealers said the large market value of Yangzijiang had attracted several institutional investors.

Yangzijiang said it has placed out a total of 43.8 million shares to UBS AG’s UBSN.VX funds, DBS Group Holdings (DBSM.SI), and Aranda Investments — a subsidiary of state investor Temasek Holdings [TEM.UL].

Dealers said shares in Yangzijiang were trading at about 27 times its previous year’s earnings, while its closest rival Cosco Corp (COSC.SI), a Singapore-listed Chinese shipbuilder, trades at 30.8 times its 2006 earnings.

Yangzijiang, one of the mainland’s oldest shipmakers, is based in the coastal province of Jiangsu, near Shanghai.

UBS was the bookrunner, and joint lead manager with DBS Bank for the deal.

((Reporting by Jamie Lee, editing by Doreen Siow; jamiewl.lee@reuters.com, Reuters Messaging; jamiewl.lee.reuters.com@reuters.net; +65 6870-4575))

($1=1.513 Singapore Dollar) Keywords: YANGZIJIANG IPO/

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