China shipping firm jumps 83 percent on Shanghai trading debut

SHANGHAI, June 26, 2007 (AFP) – China’s flagship shipping firm, COSCO Holding, jumped 83 percent on its trading debut in Shanghai Tuesday after raising net proceeds of 14.88 billion yuan (1.96 billion dollars). COSCO shares opened at 15.52 yuan on the Shanghai Stock Exchange, in line with broker estimates, against its initial public offering (IPO) price of 8.48 yuan.

The opening represented a 40 percent premium to Monday’s close of its Hong Kong-listed H-shares of 11.40 Hong Kong dollars ((1.46 US).

The broader market meanwhile was volatile, recovering from sharp early losses to trade slightly firmer in late morning deals.

The offering by COSCO attracted strong interest from investors, pulling subscription funds of 1.63 trillion yuan for the offering of 1.784 billion A-shares or 20 percent of its enlarged share capital. The proceeds of the IPO will be mainly used to pay for a controlling stake in a logistics arm of its parent and buy new vessels, the company has said.