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China Railway Express plans IPO

(Shenzhen Daily)
Updated: 2007-04-25 09:47

China Railway Express Co, owned by the Ministry of Railways, is planning an initial public offering (IPO) of shares in Shanghai late this year, two sources familiar with the situation said yesterday.

The company, a rail-based express delivery firm and a partner of national postal service operator China Post, had hired Guotai Jun'an Securities Co to help it with IPO preparations, the sources said.

China Railway Express had also hired a global accounting firm to assist it with auditing for the IPO, and that work was expected to be finished soon, they said.

The government is reforming its railway system partly by encouraging rail companies to go public, in order to boost their capital and strengthen their management.

The sources said the railway ministry had given approval for the IPO to proceed, but China Railway Express had not yet applied to China's securities regulator. A company spokesman was not available to comment, while Guotai Jun'an declined to comment.

China Railway Express may also consider listing in Hong Kong at the same time as its Shanghai debut, but no decision had been made, the sources said. "Hong Kong is an option but it will mostly be up to the railway ministry," one of the sources said.