China Plans to Raise $5bn Through Rail IPO

5 July 2009 (Last Updated July 5th, 2009 18:30)

China is planning to raise $5bn through the initial public offering of the holding company that will control the Shanghai-Beijing rail line. The proceeds will be utilised to part-fund the $731bn plan to extend the rail network to 120,000km by 2020. JP Morgan Chase & Co, China

China is planning to raise $5bn through the initial public offering of the holding company that will control the Shanghai-Beijing rail line.

The proceeds will be utilised to part-fund the $731bn plan to extend the rail network to 120,000km by 2020.

JP Morgan Chase & Co, China International Capital Corp and Macquarie Group will arrange the IPO in the second quarter of 2010 in Hong Kong.

The holding company will include the assets of the existing Shanghai-Beijing rail line and the Shanghai Rail Bureau operations, and not of the high-speed rail line between the two cities as proposed earlier.