China Railway raises £1.47 billion in IPO

Source: Exec Digital UK

Date :23/11/2007 11:18:09

Despite a cooling in the market, China Railway Group Ltd’s initial public offering on the Shanghai Stock Exchange was greatly oversubscribed, the state-owned railway builder said Friday.

The state-owned railway builder said the stock sale raised 22.44 billion yuan, or £1.47 billion.

The IPO attracted a record 3.38 trillion yuan ($457.2 billion) in subscriptions, exceeding the previous record 3.378 trillion yuan bid for oil giant PetroChina.

PetroChina raised 66.8 billion yuan in its share offering - a record for a mainland China exchange.

Share price

Beijing-based China Railway Group said it priced its shares at 4.80 yuan (65 cents), at the top of the indicative range due to the strong demand from subscribers.

Interest was strong despite a cooling of The Shanghai Composite Index after hitting a record high 6,124.04 on October 16.

By midday Friday, it had fallen 0.9 percent to 4,939.66, near a three-month low.

Its shares will begin trading on December 3. There are also plans for a stock market listing in Hong Kong.

November 23, 2007