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how much, i may ask?
Jiangsu Eastern Shipyard will push ahead with its IPO of up to US$65 million in Q2, despite tumbling stock markets, a company official said.
The company's planned listing will fund the company's expansion efforts, as it looks to start building Very Large Crude Carriers (VLCCs) over the next 18-24 months, the official said. The firm currently builds medium-sized heavy oil vessels of up to 80,000 deadweight tonnes.
"We need the financial muscle to raise our manufacturing capacity," the official told Reuters via telephone.
"Our orders are increasing, especially from Germany. We target to kick off the manufacturing of VLCCs."
The official said the company expected its manufacturing capacity to grow by 30% to around 400,000 deadweight tonnes this year and 500,000 deadweight tonnes by 2010.
Jiangsu Shipyard, located on the east coast of China, typically takes about a year to complete a newbuild order, the official said.
OCBC is expected to be handling the IPO.
Banking sources said that typically shipyards looking to list would likely raise between $50 million and $300 million.
"This is the kind of range you would be looking at realistically, although the individual companies may have higher targets," said a Singapore-based banking source familiar with the industry.
China is the world's 3rd-largest builder of ships, behind South Korea and Japan, and Beijing aims to overtake its Asian rivals within 2 years.