North China Shipping to raise US$700 mln from HK IPO

North China Shipping Holding Co.Ltd, the Hong Kong unit of Hebei Ocean Shipping Co Ltd involved in international bulk cargo shipping, announced intentions to raise a minimum of US$700 million in a Hong Kong IPO.

Through the public offering, the proceeds raised will be directed towards funding higher freight rates and transportation costs for raw materials. With record shipping rates and a very active market, the company aims to complete procedures for an IPO and float shares by the end of the year.

With surging demand for energy in China, the Baltic Exchange's dry freight index, an indicator of ship freights, doubled in the past year and even yielded a record high of 9,259 on Wednesday.

Good performances marked by rival shipping companies in the stock market, is another pull factor for North China Shipping to list. This year, shares of China Shipping Development Co<600026><1138> doubled, whilst shares of Pacific Basin Shipping<2343> tripled and reported a record high on Thursday.