Report: China Shipping IPO to raise lower proceeds

Report: China Shipping IPO to raise lower proceeds    China Shipping Group has lowered the amount it expects to raise from the stock market for the sale of a 25-percent stake in China Shipping Container Lines, reports in Asia said.
   The original plan was state-owned China Shipping Group would get about $2 billion by selling a 25-percent stake in Shanghai-based China Shipping Container Lines with an initial public offering on the Hong Kong stock market.
      But the Chinese group now expects to raise only about $1.3-1.4 billion through the sale, reflecting weaker stock market conditions and concerns over the Chinese government’s policy to slow down its economy, Hong Kong-based newspaper The Standard reported today.
   The IPO would be valued using a price earnings ratio in single digit, rather than the original ratio of up to 11 times earnings, the newspaper added.
   “China Shipping Container Lines was also expected to announce a strategic investor for its IPO in the near future,” the Hong Kong newspaper said. It cited Hongkong International Terminals, part of Hutchison Port Holdings, as one of the strategic partners in talks with China Shipping Container Lines to buy a share.