Small investors scramble to buy China Shipping shares

Small investors scramble to buy China Shipping shares    Despite a lackluster reception of the placement of new shares in China Shipping Container Lines among institutional investors, the portion of the shipping company’s initial public offering aimed at the general public has been oversubscribed more than 50 times on the Hong Kong stock market.
   The directors of Shanghai-based China Shipping Container Lines said the 121 million H shares offered to the public were oversubscribed 52 times, with investors applying for 6.4 billion shares. By contrast, the 2.3 billion “H” shares due to be sold to large investors under the placement “were moderately oversubscribed.”
   China Shipping Container Lines, the second-largest container shipping line in China, said it has decided to double to 242 million shares the portion of its capital offered to the public, and to reduce from 2.3 billion to 2.18 billion the shares sold through the institutional placement. The total number of shares sold will remain 2.42 billion, representing 39 percent of the capital of the company, subject to over-allotment.
   China Shipping Container Lines said in a statement today the net proceeds of the share offer after deducting expenses and based on the final offer price of HK$3.75 per share is estimated at HK$6.7 billion ($890 million). The Chinese company had initially hoped to raise as much as $2 billion, according to reports in Asia.
   Trading in the Shanghai-based carrier’s H shares is expected to commence at 9:30 a.m. Wednesday.