China Shipbuilding Industry Co (CSIC) received approval to launch an initial public offering worth around US$1 billion on the Shanghai Stock Exchange, Reuters reported. The China Securities Regulatory Commission (CSRC) approved China’s top shipbuilding company’s application which joins nearly 30 other domestic firms on a list awaiting the final go-ahead from the CSRC to launch its IPO, which is typically granted within a month after approval. Fueled by liquidity in the system, the Shanghai Composite Index has jumped nearly 90% so far this year. CSIC announced that it plans to issue nearly 2 billion A-shares, or 30% of its expanded capital after the IPO. The firm is seeking around US$943 million to aid in its production of spare parts for ships, enhance its supplementary shipbuilding business and improve equipment supplies, it said in a draft prospectus.
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