China CNR Corp, the company behind the rail cars used in Beijing’s subway, is looking to raise at least US$2 billion through an initial public offering in Shanghai, Bloomberg reported. CNR Corp plans to sell 2.5 billion shares at RMB5-5.56 (US$0.73-0.81) each. The price values the company at 24.5-27.3 times its estimated 2010 earnings, according to a person familiar with the plan. The proceeds from the listing will be used to finance US$937 million of projects, including the production of high-speed trains. Beijing plans to build more than 18,000 kilometers of high-speed rail lines by 2020, at a cost of US$732 billion. CNR Corp was spun off from its parent group, China Northern Locomotive & Rolling Stock Industry, in 2008. Its principal competitor, China South Locomotive & Rolling Stock, raised US$1.48 billion through a dual listing in Hong Kong and Shanghai in August 2008.
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