Chinese freight forwarder Sinotrans made its debut on the Hong Kong stock exchange on February 14 and the price gained nearly 3 per cent on its first day of trading. The debut followed a successful international share offering that raised about US$436m. The company floated 38.5 per cent of its total capitalisation through the offering.
Shares equivalent to 5 per cent of total post-IPO capitalisation were sold at the issuing price to DHL Worldwide Express, reported China Daily. Another two international logistical service providers, UPS and EXEL, also agreed to subscriptions of up to US$35m and US$10m respectively, said Sinotrans.
Zhang Jianwei, president of Sinotrans, said a foreign company had approached it with a view to forming a possible shipping agency joint venture. Although currently not allowed, new rules due this year will permit overseas participation in this sector.