Shipbuilder China Rongsheng Heavy Industries plans to raise as much as US$2.28 billion in an initial public offering in Hong Kong this month, the Wall Street Journal reported, citing a person familiar with the situation. The company, which is controlled by Zhang Zhirong, chairman of Glorious Property Holdings (0845.HK), shelved its listing plans in 2008 as shippers and port operators responded to the global financial crisis by cutting capacity and deferring investment in new vessels. Rongsheng is seeking to sell 1.75 billion shares and has set an indicative price range of HK$7.30-10.10 (US$0.94-1.30). Four cornerstone investors have committed a combined US$140 million to the IPO, including CNOOC Ltd. (CEO.NYSE, 0883.HK), China Southern Fund Management and PICC Property & Casualty (2328.HK). The offering is likely to be one of the largest in Hong Kong this quarter after insurer AIA Group (1299.HK) raised US$20.5 billion.
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