COSCO Holdings? shares soar on first day of trading

COSCO HoldingsÆ shares soar on first day of trading COSCO Holdings' stock price nearly doubled today on the Shanghai stock market during its first day of trading.
   The company, whose U.S. operations are based in Secaucus, N.J., saw its shares “soared 83 percent over their initial public offering price of 8.48 yuan ($1.11), when they debuted on the Shanghai stock market on Tuesday, opening at 15.52 yuan ($2.04),” the state-owned People’s Daily newspaper said. Reports said the stock later hit a high of 17.15 yuan ($2.25) before closing at 16.38 yuan ($2.15).
   The newspaper quoted securities brokers who called the listing in Shanghai “a rare example of a Chinese company returning to the mainland market.”
   Last week the company offered 1.78 billion yuan-denominated shares on the Shanghai market, 20 percent of its total 8.9 billion shares. Potential investors offered nearly 100 times as much money to subscribe to the IPO.
   In June 2005, it issued 2.58 billion H-shares when it was listed in Hong Kong.
   The People’s Daily quoted stockbrokers as predicting the company’s stock would rise to around 20 yuan ($2.63).
   The company will use the capital raised to buy 51 percent of COSCO Logistics Co. and 12 new containerships, and also to build new quays and for logistics projects, according to the listing prospectus.
   COSCO Holdings is one of several members of the COSCO Group that focuses mainly on shipping and logistics, but is also involved in the shipping agency business, freight forwarding, shipbuilding, ship repair, terminal operation, container manufacturing, trade, financing, real estate, information technology, business consulting and contract employment.