Beijing-Shanghai High-Speed Rail Raises 5 Trillion Won in Shanghai Stock Exchange IPO

[Asia Economy Beijing=Special Correspondent Park Sun-mi] The Beijing-Shanghai High-Speed Railway is raising funds worth over 5 trillion won through a listing on the Shanghai Stock Exchange.

On the 3rd, Beijing-Shanghai High-Speed Railway announced a "public stock offering notice," stating that it plans to raise 30.674 billion yuan (approximately 5.1 trillion won) through an initial public offering on the Shanghai Stock Exchange. The net proceeds after issuance costs amount to 30.634 billion yuan. The new share subscription is scheduled to take place on the 6th.

The planned size of the new shares to be listed is 6.28563 billion shares, with a public offering price of 4.88 yuan per share. Initially, Beijing-Shanghai High-Speed Railway planned to issue 7.56 billion new shares, but the issuance size was reduced during the preparation process without any special explanation.

Although the scale has been reduced, it remains the largest initial public offering on the Chinese mainland stock market since Guotai Junan Securities' 30 billion yuan offering in 2015.

The high-speed rail line connecting the 1,300 km section between Beijing and Shanghai opened in 2011, traveling at a maximum speed of 350 km/h and covering the distance in just four and a half hours. As of 2018, the net profit of Beijing-Shanghai High-Speed Railway was 10.25 billion yuan, a 13.2% increase compared to 2017.

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