Port company looks to share offer

A docker directs the loading of shipping containers onto CMA CGM SA's Benjamin Franklin container ship at Guangzhou Nansha Container Port in Guangzhou, Guangdong province. [Photo/Agencies]

Guangzhou Port Co Ltd, one of the largest hub ports in South China, is planning a share offer in the first half of this year, looking for financing to expand business, according to a senior company executive.

Song Xiaoming, vice general manager of Guangzhou Port Co, said: "It will be a big step forward for the company's business expansion as we are positioning to develop into an international shipping center."

The company's IPO plan on the Shanghai Stock Exchange was approved in late January by the China Security Regulatory Commission, the country's top securities regulator.

The company was jointly founded by the Guangzhou Port Group, SDIC Communications Holding Co and Guangzhou Development Group Incorporated in 2010, with registered capital of roughly 5.5 billion yuan ($797.2 million).

The funds will be raised for construction of new docks and berths at the port in Nansha district, Guangzhou, according to the company.

Four berths with a handling capacity of 100,000 metric tons of containers each and two 70,000 ton container berths will be built at the third phase at Nansha port, with an investment of more than 7.4 billion yuan.

Song said: "Construction of the new berths and docks will help improve efficiency and business expansion of Nansha port."

In 2016, Guangzhou Port opened 18 new international lines, of which four were designed for Europe and the US.

"The number of containers handled at the Guangzhou Port increased significantly last year, thanks to the expansion of shipping lines," said Song.