They have been making steel. Now they will increase production of one of many products made from steel; ships.
Dec. 4 (Bloomberg) -- China Shipbuilding Industry Co., the nation’s largest maker of vessel equipment, plans to raise as much as 14.7 billion yuan ($2.15 billion) in Shanghai in the country’s third-largest initial public offering this year.
The Chinese government wants locally made components to account for 80 percent of Chinese-made vessels by 2015, as part of a wider drive to surpass South Korea as the world’s biggest shipbuilding nation.
China Shipbuilding will use about 4.3 billion yuan of the proceeds to construct production capacity for ship engines and parts, according to a draft prospectus Nov. 25. Another 1.45 billion yuan will be used for producing additional marine auxiliary machinery, while the remaining 673 million yuan will be to finance an expansion of transportation equipment.
The company plans to offer 45 percent of the shares available to institutional investors through an offline sale, while the remaining 55 percent will be offered to both institutional and individual investors in an online tranche.
click here for link