Chinese bulker player Fujian Guohang Ocean Shipping is planning an initial public offering on the Beijing Stock Exchange that could see the company raise CNY 1.25bn ($173m).
Local news agencies reported that Fujian Guohang has met listing conditions and plans to issue as many as 148.2m shares at the price of at least CNY 9 per share. It would use CNY 1.21bn of the funds raised to acquire five bulkers and supplement its working capital.
The timing of the listing remains undisclosed.
According to market sources, Fujian Guohang is due to take delivery of five ultramax bulk carrier newbuildings from Shanhaiguan Shipbuilding in 2024 and 2025.
The company has chartered the 65,000-dwt bulkers from Citic Financial Leasing (Citic FL) under a long-term basis.
The Chinese-flag ultramax bulker newbuildings reportedly cost the Chinese leasing company CNY200m per ship.
Shanghai-based Fujian Guohang is the largest privately owned bulker company in China.
It was established in 2001 and is already listed on the smaller, National Equities Exchange and Quotations, or the New Third Board for small and medium-size companies.
It is controlled by managing director Wang Yanping and his wife, former shipbroker Zhang Yi.
In addition to its bulker business, Fujian Guohang also operates a Taiwan Strait fast ferry from its original home base in Fujian province.
Fujian Guohang is listed with 19 bulkers up to kamsarmax size and one small cruise vessel — the 24,318-gt Blue Dream Star (built 2001). The company’s bulker fleet is engaged in international and domestic coastal trade, mainly shipping coal.
Clients of Fujian Guohang include commodity traders and mining companies such as Rio Tinto, BHP, Cargill, Baosteel, Huanneng Group, COFCO and Huadian Corp.
The company recorded operating income of CNY 1.44bn in 2021, an increase of around 107% from 2020. It logged a net profit of CNY 368m in the period.
