SINOTRANS SHARES OVERSUBSCRIBED 20 TIMES

SINOTRANS SHARES OVERSUBSCRIBED 20 TIMES    The long-awaited initial public offering of Sinotrans Ltd., the largest Chinese freight forwarding group, raised about HK$3.4 billion ($435 million) in Asia today, when the partially privatized group became the most traded stock on the Hong Kong stock exchange.
   Sinotrans reported that its stock offer was oversubscribed about 20 times. The company sold 1.55 billion “H shares,” representing some 38.5 percent of its issued share capital. The Chinese group has also granted options for a period of 30 days to international underwriters to acquire additional shares.
   Trading in the company’s shares started today. The stock closed at HK$2.25, 3 percent higher than the initial offer price of HK$2.19.
   Deutsche Post World Net, the parent company of Danzas and DHL, said it has acquired a 5-percent stake in Sinotrans for about 52 million euro ($57 million), making it the largest strategic investor.
   Other strategic investors bought another 5 percent in Sinotrans. Sinotrans confirmed recently that UPS, DHL, Exel and Nissin would buy shares in the group.
   “This investment in Sinotrans is a decisive step towards reinforcing our strategic position in China, an important future market,” said Klaus Zumwinkel, chairman of Deutsche Post.
   The Chinese government remains the largest shareholder in Sinotrans.
   The Sinotrans group is active in freight forwarding, express service, shipping agencies, logistics, storage and terminal services, trucking and marine transportation. The group includes a sizeable non-vessel-operating common carrier arm, as well as the shipping line Sinotrans Container Lines.