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China Railway Construction to raise $1.6 billion in sale

12/17/2014| 10:06:04 AM|

China Railway Construction Corp. will raise as much as 9.9 billion yuan in a private share sale in the mainland to fund projects.

China Railway Construction Corp. (601186) will raise as much as 9.9 billion yuan ($1.6 billion) in a private share sale in the mainland to fund projects as the world’s second-biggest economy accelerates infrastructure investments.

The railway builder plans to sell as many as 1.38 billion new shares to as many as 10 investors at at least 7.20 yuan per share, the company said in a Shanghai exchange filing today. That’s 26.5 percent less than the last closing price of 9.79 yuan in Shanghai, before trading was suspended Dec. 9. Shares will resume trading Dec. 17.

China Railway Construction said it will also use the funds to repay bank loans and replenish working capital. The Beijing-based company is bidding aggressively for overseas projects and its Nigerian unit signed a $13.1 billion rail contract last month.

China is targeting emerging markets such as Africa, Eastern Europe, Latin America and Southeast Asia for rail projects. Premier Li Keqiang has touted the country’s rail equipment engineering and construction companies on overseas trips and signed deals.

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TAGS: China Rail Construction | investment | infrastructure
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