© 2008 The Associated Press
HONG KONG — State-owned railroad builder China Railway Construction Corp. priced its Hong Kong initial public offering at the top end of the indicative range Thursday, according to a media report, raising $5.4 billion along with a dual Shanghai share offering to make the world's biggest IPO so far this year.
China Railway Construction raised $2.33 billion in Hong Kong from the sale of 1.7 billion shares at 10.70 Hong Kong dollars ($1.37) each, a person familiar with the deal told Dow Jones Newswires.
It had set an indicative price range of HK$9.93 ($1.28) to HK$10.70 ($1.37) a share.
The retail offering of the Hong Kong IPO was 291 times oversubscribed, tying up more than a record of $60 billion from investors in Hong Kong while the institutional tranche was 80 times oversubscribed, the person said.
China Railway Construction is scheduled to list in Hong Kong on March 13.
The railroad builder had already sold 2.45 billion A shares in its Shanghai IPO at 9.08 yuan ($1.28) each, also the top of the indicative range, to raise 22.25 billion yuan, or $3.13 billion. The company is planning to list on the Shanghai Stock Exchange on March 10.
Nine strategic investors subscribed to $450 million worth of the Hong Kong shares, or $50 million each.
Those investors include Singapore's Singapore state-owned investment company Temasek Holdings Pte. Ltd., the Government of Singapore Investment Corp., Yale University, Citic Pacific Ltd., Bank of China Investment Management Co. and China Life Insurance (Group) Co.
China Railway Construction earlier said it would use 80 percent of the funds raised in the Hong Kong offering for equipment purchases, with the remainder to be used for construction of a cement plant in Nigeria and for working capital.
Now that's a mistake. If it would be true, trains would ascent and descent at angle of 53 degrees, which is too steep even for cog rails (45 deg max).The country's first undersea tunnel, nine kilometers in length, is currently being built in the coastal city of Xiamen, across the strait from Taiwan. The tunnel, which delves six kilometers below sea level