china-south-locomotive-ipo-finally-gets-underway

China South Locomotive IPO finally gets underway

The Chinese train maker seeks a smaller-than-expected $566 million from the H-share tranche as the valuation is kept below 20 times earnings. The combined A- and H-share offering may raise up to $1.52 billion.

Anette Jönsson

August 05, 2008

China South Locomotive Rolling Stock CSR yesterday kicked off the institutional roadshow for the H-share portion of its initial public offering and said it aims to raise between HK$3.98 billion and HK$4.42 billion $511 million to $566 million. A greenshoe could add another 15%, resulting in total proceeds of approximately $650 million.

Even without the shoe, this will be the third largest IPO in Hong Kong this year after China Construction Railway Corp CRCC and rice cracker maker China Want Want, which raised $2.55 billion and $1.04 billion respectively in the first half of March. The third largest listing at the moment is casino operator SJM Holding, which raised $494 million...

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