CSCEC sets IPO record

China State Construction & Engineering Corp (CSCEC) has raised CNY 50.2 billion (US$ 7.34 billion) through an initial public offering (IPO) of 40% of its shares. The listing on the Shanghai stock exchange is thought to be the largest anywhere in the world this year.

The company, which is still majority-owned by the Chinese state, sold 12 billion shares at CNY 4.18 (US$ 0.61) each, the top of the pre-floatation price range. Demand for shares was reported to be more than 35 times over-subscribed.

With sales last year of CNY 202 billion (US$ 29.6 billion) and an operating profit of CNY 6.7 billion (US$ 981 million), the floatation values CSCEC at 18.7 times profit.

Shares in CSCEC are due to begin trading on Wednesday.