China State Shipbuilding offers shares for expansion

China State Shipbuilding Co<600150> announced yesterday that it has raised RMB 12 billion (US$1.6 billion) by selling four million shares to eight strategic investors.

The offer price was set at RMB 30 per share, equivalent to one-eighth of its existing share price. The new shares are subject to a 36-month locking period, according to the company's filing to the Shanghai Stock Exchange.

The strategic investors include Baosteel<600019>, China National Offshore Oil Corp, China Life Insurance (Group) Co <601628><2628> and state financial conglomerate CITIC Group.

In the first half of this year, the orders received by China's shipbuilding industry surged 165% over the same period last year, which makes China overtake South Korea as the world's largest shipbuilding country in terms of deadweight tonnage.

In January of this year, China State Shipbuilding Co still hovered at around RMB 30 per share. Since then it began soaring, becoming China's most expensive stock. On Tuesday, China State Shipbuilding dipped 0.38% to close at RMB 248.75.