SHANGHAI - China Railway Materials Commercial Co Ltd (CRMSC) plans to raise up to 12 billion yuan ($1.8 billion) in a dual listing in Shanghai and Hong Kong around the end this year, China Business News reported on Monday.
CRMSC, established in September 2010 to become the listed arm of a similarly named major enterprise controlled by the Chinese central government, plans an equity initial public offering (IPO) of between 10-12 billion yuan, the newspaper cited chairman Song Yufang as saying.
The company, which has a paid-in capital of 5.6 billion yuan and accounts for 99.45 percent of the turnover of its parent, will use the IPO proceeds to expand its railway materials supply and steel trade businesses, it said.
CRMSC is planning its IPO late in 2011 or early 2012, Song said.
"But the timing will also depend on regulatory approval and capital market conditions at that time," Song added.
The parent company's sales revenues were expected to have reached 153 billion yuan in 2010, up sharply from 105 billion yuan in 2009, propelled by the country's robust economic growth, the newspaper quoted Song as saying.>
