HONG KONG • China Railway Construction Corp, one of the country’s biggest infrastructure builders, plans to seek as much as US$800 million (RM3.27 billion) in a spinoff of its tunnelling machinery business, people with knowledge of the matter said.
China Railway Construction Heavy Industry Co, known as CRCHI, is working with advisors and plans to file a listing application with the Hong Kong stock exchange as early as this quarter, the people said. The company aims to start trading this year, said the people, who asked not to be identified because the information is private.
Hong Kong stocks entered a bull market this week, raising hopes that initial public offerings’ volumes will recover after the slowest first quarter since 2013. First-time share sales in the city totalled US$2.6 billion in the first three months of the year, with the largest deal raising just US$328 million, data compiled by Bloomberg showed.
Details of the offering including the fundraising size and timeline could change, the people said. An external representative for CRCHI said she couldn’t immediately comment.
China Railway Construction said in June that it planned to list the business in Hong Kong after a restructuring, without providing further details. CRCHI’s net income rose 25% last year to 1.64 billion yuan (RM995.99 million), according to its parent’s exchange filings.
Shares of China Railway Construction have risen 20% in Hong Kong over the past year. — Bloomberg