Cosco jumps 83% at Shanghai debut

(Shanghai Daily)
Updated: 2007-06-26 13:04

The yuan-denominated stock of China Cosco Holdings Co 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.

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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.

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