China COSCO to raise US$1.94 bln from offering
Funds raised will be used to build new container ships which are expected to be put in use between 2018 to 2019
China COSCO, the largest integrated shipping company in China and the second largest in the world, is considering a private share placement to raise 12.9 billion yuan (US$1.94 billion) from 10 specific firms, China Securities Journal reported.
The funds raised will be used to build container ships which are expected to be put in use between 2018 to 2019.
The company said its transport capacity along the “Belt and Road” regions will be strengthened, after the non-public offering of 2.043 billion shares.
China COSCO Shipping Group, the indirect controlling shareholder of the company, claims it will purchase 50% of the shares.
Insider believe that China COSCO commands the major segment of China COSCO Shipping’s core business, and the restructuring will make them a first tier container and marina service provider.