China Shipbuilding Selling Shares to Raise USD 586 Mn

Image Courtesy: CSIC

In an effort to reduce its debt, China Shipbuilding Industry Co. has revealed plans to raise some CNY 3.9 billion (USD 586.7 million) through the sale of 718 million of its shares, Bloomberg cited data from the company’s stock exchange filing.

The shares would be sold at a price of CNY 5.43 each to the shipbuilder’s parent company, China Shipbuilding Industry Corporation (CSIC), and two wholly owned units of the group.

With this move, the parent company would support China Shipbuilding with an amount of CNY 3.16 billion, thereby increasing its stake in the firm from 52.7 percent to 54.5 percent.

Due to a sluggish shipbuilding industry the company’s debt as of March 31 stood at CNY 130.7 billion (USD 19.6 billion).

China Shipbuilding added that the plan still needs to gain approval of regulators and shareholders.

According to data released by China’s Ministry of Industry and Information Technology, during the first quarter of 2016 Chinese shipyards recorded an increase in newbuilding orders.

From January to March of 2016, the country’s newbuilding orders jumped by 23,9 percent to 7.42 million dwt, compared to the same period a year earlier, while the shipyards constructed 8.35 million dwt in vessel tonnage during the first quarter, down by 11.8 percent.

The Chinese orderbook backlog decreased by 17 percent, as it stood at 120.35 million dwt by the end of March.

IHS Maritime & Trade earlier said that the shipbuilding industry has entered one of the toughest years in recent history.

Namely, major shipbuilding nations will be put to the test during 2016, as competition is expected to intensify as a consequence of diversification in other sectors.

Chinese yards seem to be destined to enter the technically complex areas of cruise vessels and liquefied natural gas (LNG) tankers, according to IHS Maritime & Trade.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jan 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >