NOL to list joint venture on Hong Kong stock exchange
APL Logistics’ parent company Neptune Orient Lines, is planning to list its joint venture CMA Logistics Co. Ltd. on the Hong Kong stock exchange.
Professional and institutional investors will be offered 55 million shares in CMA Logistics, which provides logistics services mainly for car manufacturers and car components suppliers in China, at between HK$2.30 (30 cents) and HK$2.70 (35 cents) per share.
APL Logistics said it expects its interest in the company to drop from 30 percent to 20.74 percent following the placement of the shares. China’s Changan Group (40 percent) and Minsheng Group (30 percent) are the other current joint venture owners of CMA Logistics.
“The company is well placed to further capitalize on the growing demand for automobiles in China,” said Koay Peng Yen, president Greater China for NOL Group and APL Logistics and director of CMA Logistics. “Factors such as growing personal incomes, the relaxation of restrictions on automotive financing and reduced car prices following China’s accession to the WTO are creating significant opportunities within the automotive logistics industry.”