Business· Construction· Transportation

Beijing-Shanghai High-Speed Railway to launch IPO, listing by Q1 2020

minutes 2019/10/29 10:34:12
Beijing-Shanghai High-Speed Railway, IPO, CSRC

Oct 29, 2019 (China Knowledge) - Beijing-Shanghai High-Speed Railway, the operator of China's busiest high-speed rail lines, has submitted listing documents to the China Securities Regulatory Commission (CSRC) and is expected to list in the first quarter of 2020.

According to the preliminary prospectus, the company plans to issue no more than 7.556 bln shares on the Shanghai Stock Exchange, accounting for about 15% of the total share capital after the issue.

The document did not specify the company’s target amount of fundraising but revealed that all funds raised will be used to acquire 65% of Anhui’s Beijing-Fuzhou Railway Passenger-Dedicated Railway for RMB 50 bln.

Institutional investors believe the IPO’s fund to be raised could reach RMB 30 bln, with the rest of the funds for the acquisition coming from the company’s coffers. China’s biggest IPO to date was in 2010 when the Agricultural Bank of China (601288) raised USD 22.1 bln.

The Beijing-Shanghai high-speed railway officially started construction on 18 April, 2008, and opened to traffic on 30 June, 2011. Its main track extends to 1,318 km long, and it is the longest high-speed rail track in the world.

The company’s revenue from 2016 to 2018 registered RMB 26.3 bln, 29.6 bln, and 31.2 bln respectively. In the first nine months of 2019, it realized total revenue of RMB 25.02 bln, and a net profit of RMB 9.52 bln. Based on this figure, the average daily net profit of the company hit nearly RMB 35 mln, or exceeds 90% of A-shares listed companies in the Shanghai and Shenzhen Stock Exchange.

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