THE yuan-denominated stock of China Cosco Holdings Co (stock code: 600428) debuted at 15.52 yuan (US$2.04) in Shanghai today, jumping 83 percent from its initial price.

The benchmark Shanghai Composite Index dropped 1.72 percent to 3,873.38 at 9:43am today.

The Asia's largest container line sold 15 billion yuan of stock at 8.48 yuan each to buy new ships and a stake in a logistics company.

Investors bought 1.78 billion A shares, representing a 20 percent stake in the company, China Cosco said in a Hong Kong stock exchange statement yesterday.

China Cosco plans to spend six billion yuan of the sale proceeds on 12 new vessels, according to a share sale document. It will also use 1.68 billion yuan to buy a 51 percent stake in Cosco Logistics from its state-owned parent Cosco Group and another 401 million yuan for projects being developed by the logistics unit.

The company sold 535 million shares to strategic investors, 356.9 million to institutional investors and 891.9 million to individual investors. Strategic investors have to hold their shares for a year, while the lock-up period for institutional investors is three months, the company said on June 20. China International Capital Corp arranged the sale.