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Beijing-Shanghai High-Speed Railway Company to launch IPO, China [free access]

October 26, 2019

The Beijing-Shanghai High-Speed Railway Company, the operator of a high speed rail (HSR) line connecting Beijing and Shanghai, has submitted a prospectus to the China Securities Regulatory Commission to launch an initial public offering (IPO) in the first quarter of 2020. The company is also responsible for investment in and construction of the line. Currently, the company has 12 shareholders. If approved, it will become one of the largest IPOs to be launched in nine years.

 

According to the prospectus, the company will issue 7.556 billion shares (i.e. 15 per cent of its total issued share capital) for a consideration of CNY50 billion. The proceeds from the IPO will be used to acquire a 65.08 per cent stake in Jingfu Anhui Company. 

 

The Beijing-Shanghai High-Speed Railway Company operates the 1,318-km-long HSR line connecting Beijing, Shanghai, and Tianjin, as well as the provinces of Hebei, Shandong, Anhui, and Jiangsu. The line covers 24 stations. It has reduced the end-to-end journey time between the cities to four and a half hours. As of September 30, 2019, the line had a ridership of 1.085 billion passengers.

 

(1 CNY [Chinese Yuan Renminbi] = 0.14 USD)