Shanghai Zhonggu Logistics will seek to expand its fleet as it looks to complete a domestic initial public offering (IPO).
The Chinese company will list on the main board of the Shanghai Stock Exchange after it launched a stock sale on 16 September. The company is aiming to raise CNY 1.48bn ($218m).
Proceeds will be used to buy vessels and containers, Zhonggu has said.
The Shanghai-based shipowner, controlled by Zhonggu Shipping, is selling up to 66.7m shares at CNY 22.19 each, which amounts to about 10% of the company.
The deal has been over-subscribed by 7.5 times, Zhonggu said on 18 September in a filing.
Beijing investment bank China International Capital Corporation (CICC) was the lead underwriter of the deal.
Shipping IPOs moving forward
The transaction is one of three IPOs currently moving forward in shipping despite financial turmoil created by the Covid-19 pandemic.
Golar LNG spin-off Hygo Energy Transition is looking to raise $558m in the US, while Russian owner Sovcomflot is aiming for a $500m pot in Moscow.
Consultancy Alphaliner ranks Zhonggu as the 13th largest liner operator in the world with its 115 ships. The company is the largest domestic Chinese line.
Clarksons lists it with 39 of its own ships, from 5,000 teu down to 2,500 teu, plus multipurpose ships of between 7,000 dwt and 31,000 dwt.
Two 1,140-teu feeeder newbuildings are on order at WUT Guangda Shipbuilding in China for delivery next year.
Revenue stood at $1.46bn in 2019, up from $1.19bn the year before.
Zhongghu Shipping will remain the largest shareholder, with 63.13%. Softbank and Eastern Bell Capital have small stakes.
In 2016, Zhonggu Logistics listed on the over-the-counter National Equities Exchange and Quotations exchange.
But this was pulled as the company issued an IPO prospectus earlier this year.
In this document, Zhonggu said it planned to issue 81.9m new shares or 12% of the equity, to raise $349m.
