CHINA Railway Group Ltd, the nation's largest construction company, won approval from the listing committee of the China Securities Regulatory Commission for a Shanghai public offering, the regulator said in a statement yesterday.
China Railway may raise as much as US$4 billion in the Shanghai initial public offering and a subsequent Hong Kong share sale, two people familiar with the plan said last week, according to Bloomberg News.
The Beijing-based company, which built the world's highest railroad, may sell a combined 40-percent stake in Shanghai and Hong Kong, according to a preliminary share sale document posted on the commission's Website last week.
It plans to sell no more than 4.68 billion new yuan-denominated A shares in Shanghai, the preliminary document said. China Railway also plans to sell no more than 3.82 billion so-called H shares in Hong Kong, including shares it may allocate to meet excess demand and help stabilize the share price, the preliminary document said.
BOC International Holdings Ltd and UBS AG are arranging its Shanghai share sale. ABN Amro Rothschild LLC, BOCI, JPMorgan Chase & Co and UBS are handling the Hong Kong offering.