17 Apr 2021 Sat

China Railway Signal Prepares for $2 Billion Hong Kong IPO

20 July 2015 Monday, 07:49

State-owned China Railway Signal & Communication Corp., which makes the signals used by China’s train network, plans to start taking orders for an up to $2 billion Hong Kong initial public offering next week, in the biggest float by a mainland company since that country’s rout in June.

The Beijing-based firm, which makes rail transit communication and signal systems, plans to take orders from institutional investors next Monday and to list on the Hong Kong stock exchange on August 7, a person who has direct knowledge of the deal said Monday. With its access to global investors, Hong Kong is a favorite venue for multibillion-dollar listings by Chinese companies.

The potential deal would be the world’s first major offering since China’s stock markets began coming off seven-year highs in mid-June. Despite a government-engineered revival since then, China and Hong Kong’s stock markets remain down from those peaks.

The Hang Seng Index has fallen 7% since June 8, tracking the decline of China shares. China’s Shanghai Composite Index is down 21% since June 8.

Beijing-based China Railway Signal is the world’s largest rail transportation control system provider by revenue, which comes mainly from China. The company was the sole supplier of centralized train control systems for the Beijing headquarters of China Railway Corp. and the core system products widely used in railway networks across China, according to its primary listing prospectus.


Source : WSJ

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