China’s shipping company China Shipping Container Lines is looking to raise up to CNY 12 billion (USD 1.78 billion) as it plans to issue up to 3.27 billion of A shares.
The shares would be priced at a minimum of CNY 3.66 per A share, CSCL said.
Additionally, the company has agreed to subscribe for such number of A shares for an amount of not less than CNY 5 billion and not more than CNY 7 billion under the proposed A share issuance.
Some CNY 6 billion of the net proceeds from the sale would be used for the capital injection in COSCO Shipping Leasing, while about CNY 2.4 billion would be used as a capital injection in Florens International Limited.
Furthermore, the company said that CNY 1.8 billion would go into redemption of maturing corporate bonds and CNY 1.8 billion would be used to replenish working capital of CSCL.
In July 2016, CSCL said that it is expected to switch from a container liner operator into an integrated financial services platform with leasing businesses after it received approval for a major asset restructuring earlier this year.
The company’s new segments would cover vessel leasing, container leasing and non-shipping leasing as core and shipping financing as feature.
Due to the change in business, the company said that it also plans to change its name from China Shipping Container Lines Company Limited to COSCO SHIPPING Development Co., Ltd.
World Maritime News Staff