Railroad builder plans US$2bn listing
4 January 2007
China Railways Construction Corp (CRCC), which ranks 485 on Fortune magazine's list of the 500 largest companies in the world, plans to raise up to US$2 billion through a Hong Kong initial public offering. The deal is not expected until early next year as the company would have to undergo extensive restructuring in order to list, the South China Morning Post reported. CRCC, which builds railroads, highways and airports, hopes to ride on the wave of investment Beijing intends to channel into infrastructure. According to the 11th Five-Year Plan, US$128 billion is to be spent on railroads. This represents 30% of the total infrastructure investment pot, the remainder will go to projects such as ports, highways and bridges. Port builder China Communications Construction raised US$2 billion in its December IPO and its shares have risen 80% since then.