Dalian Port downsizes Shanghai IPO

Dalian Port (2880.HK) has drastically cut the size of its planned A-share issue in a move believed intended to lessen the dilutive effect on the company’s Hong Kong-listed shares, the South China Morning Post reported. The northeastern China port operator said the total number of A shares to be offered to the public and to its parent would not exceed 1.5 billion, compared to the earlier announced planned issue of 2.4 billion shares. Dalian Port is hoping to raise at least US$553 million in a Shanghai listing. It plans to use the proceeds to acquire assets from its parent Dalian Port Corp. The company will set the final number of shares to be offered, as well as the offer price, on November 24. Nomura analyst Jim Wong said the reduced A-share issue means Dalian Port’s earnings per share will be left unchanged, which should enhance its book value.