China Shipbuilding Industry is seeking to raise up to US$2.15 billion in what would be the country’s third-largest initial public offering this year, Bloomberg reported. The company – China’s leading manufacturer of vessel equipment and also a producer of missile launchers – will sell as many as 1.995 billion shares at RMB6.15-7.38 (US$0.90-1.08) each. China Shipbuilding is likely to benefit from the government’s target for locally made components to account for 80% of Chinese-made vessels by 2015. This is part of a wider initiative to surpass South Korea as the world’s leading shipbuilding nation. China ranked second after South Korea in terms of vessels built between January and October, but it was first in terms of new orders placed during the period, with a 67.5% global market share. China Shipbuilding has also benefited from government subsidies, which contributed 21% of its first-half profit. Its net profit totaled US$178.6 million in 2008, up 52% year-on-year, thanks to a 41% increase in sales.
