East Asian Developments

by K.K. Chadha

Chinese Company Listing in Hong Kong

China’s Chu Kong Shipping Development is selling shares at HK$1.20 (US 15 cents) a share in its initial public offering in Hong Kong to raise HK$225 million. Ultimately controlled by the Guangdong provincial government through Guangdong Province Navigation Holdings, Chu Kong will issue 187.5 million shares, or 25 percent of its enlarged share capital.

The issue was to close on Friday, May 16, and trading in the company’s shares was to begin on May 23. At $1.20 a share, the company is selling its shares at 9.8 times historic earnings, based on profits of $82.98 million last year. Profits totaled $59.8 million in 1995 and $58.09 million in 1994.

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