Shanghai Jinjiang Shipping (JJ Shipping) is targeting CNY 3bn ($416m) from its IPO to fund fleet expansion.
The Chinese company, which is part of Shanghai International Port Group (SIPG), filed an application to float on the Shanghai bourse in January.
Now it has revealed its fundraising target through the sale of 15% of its shares.
The shortsea container shipping company will sell 190,412 shares, with SIPG maintaining control. The parent has 98% of the stock.
The other 2% is held by another subsidiary, Shanghai Port International Passenger Center.
Guotai Junan Securities is the sole bookrunner for the IPO, which has been on the cards since 2021.
No date has been provided for a listing, however.
The company said the proceeds will go to expanding the fleet.
It plans to order six 1,800-teu vessels and two 2,400-teu ships.
More feeder ships coming
And its own subsidiary, Shanghai Hai Hua Shipping, wants to spend $31m on two new 1,000-teu feeder units for domestic coastal services.
JJ Shipping said: “Investing in new shipping capacity will improve our cost advantage and enhance the company’s competitiveness.
“To suit our expansion strategy in South East Asia and other markets, the company will expand the fleet size in a timely manner and improve the ratio of owned and chartered capacity of the route, so as to cope with market fluctuations.”
The shipowner also plans to scrap older vessels and focus on using greener fuels such as LNG and methanol.
TradeWinds reported in January last year that SIPG had authorised the spin-off.
VesselsValue assesses the fleet of 12 vessels as worth $225m, up from $197m in January this year. But they were worth $354m in January 2022.
Four 1,900-teu ships are already on order at Zhejiang Yangfan in China for delivery this year.
JJ Shipping’s trades focus on routes from Shanghai and Qingdao to Japan, Thailand, Taiwan and Vietnam.
It is also opening up more lanes in Asia to become a leading regional carrier in terms of market share.
