June 20 (Reuters) – China Railway Group (0390.HK) (601390.SS), the country’s largest construction and engineering firm, proposes to sell new A-shares for up to 6.24 billion yuan ($914.1 million) to fund infrastructure projects.
The company said it planned to issue about 1.52 billion A-shares listed in Shanghai at not less than 4.11 yuan each. The shares will be sold to no more than 10 target investors, including its parent China Railway Engineering Corp.
China Railway will use the money to fund its Shenzhen Subway Line 5 project and a bridge and road project in China’s Liuzhou, it said in a statement late on Friday.
Its state-owned parent had agreed to subscribe 851.58 million new shares for about 3.5 billion yuan.
China Railway said the parent’s subscription shares will have a lock-up period of 36 months and other investors in the deal were not allowed to sell the shares in the 12 months after the placement.
For a company statement please click here 0618469.pdf Trading in the stock is expected to resume on Monday after being suspended last Thursday.
Shares of China Railway have fallen about 14 percent this year in Hong Kong, while its Shanghai traded stock fell 27.5 percent this year to 4.57 yuan on Wednesday. ($1=6.826 yuan) (Reporting by Alison Leung; Editing by Ron Popeski)