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The initial public offering (IPO) of China's leading logistical service provider SinoTrans was enthusiastically snapped up yesterday by global investors on the Hong Kong Stock Exchange.
Market demand outstripped the 1.554 billion-share offering by 20 times, in a sign of strong investor confidence in the firm's future prospects, said company officials.
SinoTrans Chairman Zhang Bin said: "We are delighted and encouraged by the successful listing of SinoTrans. Investors' enthusiastic subscriptions reflect their confidence in the company's management and its future."
The company floated 38.5 per cent of its total capitalization through the IPO. The issuing price was set at HK$2.19 (29 US cents), but was pushed up to as high as HK$2.32 (30.7 US cents) by late afternoon, company officials said.
Shares equivalent to 5 per cent of total post-IPO capitalization were sold at the issuing price to DHL Worldwide Express through strategic arrangements between the two companies.
Another two leading logistical service providers, UPS and EXEL, also agreed to subscriptions of up to US$35 million and US$10 million respectively, said SinoTrans.
The company was incorporated in November in a major industry restructuring, where State-owned logistical conglomerate SinoTrans Group Company transferred most of its operations in China's fast-growing coastal areas to the new company.
SinoTrans President Zhang Jianwei said: "We are going to work hard to fulfil our promises and bring our shareholders as high returns as possible."
(China Daily February 14, 2003)
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