CHINA SHIPPING TO RAISE ABOUT $90 MILLION FROM SHARE ISSUE

CHINA SHIPPING TO RAISE ABOUT $90 MILLION FROM SHARE ISSUE

   China Shipping Development Co. Ltd., a stockmarket-listed arm of China Shipping Group, will issue 350 million A shares as part of a plan to raise about $90 million from the stockmarket in China.

   The company has received approval for the A share issue from the China Securities Regulatory Commission. The Chinese-based company said that 350 million A Shares will be offered to certain public investors in the People's Republic of China, with an indicative price of RMB2.15 to RMB2.36 (26 to 28 cents) per A share.

   China Shipping Development Co. Ltd. expects to raise approximately RMB727 million ($88 million) to RMB799 million ($96 million), net of expenses, from the A share issue.

   After completion of the A share issue, the issued share capital of the company will be made up of about 3.3 billion shares comprising of: 1.68 billion state-owned legal person shares (representing approximately 50.51 percent) held by China Shipping (Group) Co.; 350 million A shares held by Chinese public investors; and about 1.3 billion H foreign shares traded in Hong Kong dollars and listed on Hong Kong stock exchange.

   The company said that it will make an application to the Shanghai stock exchange for the listing of the 350 million A shares as soon as practicable.

   China Shipping Development, which owns a shareholding in China Shipping Container Lines, said that it expects to use the proceeds of the share issue mainly to acquire tankers.

   About RMB828 million ($100 million) will be used for the acquisition of 20 oil tankers owned by Guangzhou Maritime Transport (Group) Co. Ltd., a subsidiary of China Shipping (Group) Co. Another RMB220 million ($27 million) will be spent on the construction of four oil tankers. RMB300 million ($36 million) will be used “for contributing to the capital of China Shipping Container Lines,” China Shipping Development said.