Hudong Heavy Machinery to Sell Shares for Expansion
Hudong Heavy Machinery, China's biggest maker of diesel engines for ships, will sell 12 billion yuan, or $1.5 billion, in shares to double in size as it raises funds to buy shipyards and invest in new technology.
The company will offer up to 400 million A shares at 30 yuan apiece in exchange for 9 billion yuan in assets and 3 billion yuan in cash, Shanghai-based Hudong Heavy said in a statement to the local stock exchange Monday. It will sell the stock to its parent and group of other companies.
The size of the share sale exceeds Hudong Heavy's current market value of 10.9 billion yuan and will expand its capacity to build larger ships. The company's share price has more than quadrupled in the past 12 months, outpacing China's benchmark stock index, as the country seeks to overtake Japan and South Korea as the world's biggest builder of ships.