QINGDAO Port (Group) Co, which runs world's eighth largest container port, announced to the Hong Kong stock exchange that it will launch an initial public offering in Hong Kong to raise US$377 million.
The state-owned port operator said it will sell 776.38 million new shares at HK$3.76 (US$0.48) before listing in Hong Kong on June 6, according to the stock exchange filing.
The IPO has met with lukewarm response from investors, said Lloyd's List. It is the second port IPO in six months in Hong Kong. Qinhuangdao Port Co went public in December, raising less money than it expected.
Qinhuangdao Port raised $562 million in its IPO failing to reach its $700 million target and its share price fell 17 per cent since the December 12 IPO.
But several big investors have pledged to buy nearly 50 per cent of Qingdao IPO targeting $168 million. They are Shanghai Zhenhua Port Machinery and Sinotruk International Investment (together with $50 million) as well as China International Marine Containers ($30 million) and DP World Asia ($10 million).
The company is the primary operator in the Port of Qingdao, but its market share has shrunk while volumes through the port have increased, Qingdao Port Group share fell from 88 per cent in 2011 to 83 per cent in 2012 and to 76 per cent in 2013.
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