CSRC to review top shipbuilding firm's IPO application today

The China Securities Regulatory Commission, the country's top securities regulator, on Jul. 23 announced that today it will review an application by China Shipbuilding Industry Co Ltd for a domestic listing. CSIC, the flagship firm of China Shipbuilding Industry Corp, one of the country's largest shipbuilding and ship-repairing groups, plans to issue up to 2 billion shares on the Shanghai Stock Exchange to raise RMB 6.5 billion, according to the company's draft prospectus published on the regulator's website. The company will use some RMB 4.43 billion of the proceeds to fund the production of spare parts and engines for ships, while RMB 1.45 billion will go into the supplementary shipbuilding business. The remaining amount will be used to improve equipment supplies and finance other businesses.
CSIC has hired China International Capital Corp as the lead underwriter for the new share offering. CSIC, which is currently 97.21% held by China Shipbuilding Industry Corp, 2.15% by Anshan Iron and Steel Group and 0.64% by China Aerospace Science and Technology Corp, made RMB 1.23 billion in net profit in 2008.