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HONG KONG -(Dow Jones)- China National Foreign Trade Transportation (Group) Corp. will raise up to US$455 million through an H-share offer in Hong Kong priced between HK$1.67 and HK$2.29 a share, market sources said.
The price range represents a price/earnings ratio of 10 to 13.5 times, based on estimated 2003 earnings of the company, better known as Sinotrans.
The 1.55 billion share offer will carry an over-allotment option equivalent to 15% of the offer, sources added.
The sources said DHL Worldwide Express Inc. (X.DHL), which may buy up to US$65 million of shares in Sinotrans, is still in negotiations to take a stake.
The company has secured three strategic investors so far, who will take a total of US$46 million of shares in the company.
U.K.-based logistics company Exel PLC (U.EXE) has agreed to take a stake worth US$10 million, sources said.
New York-listed express delivery company United Parcel Service Inc. (UPS) will pay US$35 million for a stake, and Japanese transport concern Nissin Corp. ( J.NCO) will pay US$1 million for a stake, sources said.
Sinotrans, a leading freight-forwarding and logistics company in China, started a roadshow Thursday in Singapore, with bookbuilding running until Feb. 7, and listing scheduled for Feb. 13.
The price range is lower than the 11 to 18 times P/E based on forecast 2003 earnings originally expected by the market.
Credit Suisse First Boston (Hong Kong) Ltd. and BOCI Asia Ltd. are joint bookrunners for the deal.
The price range represents a price/earnings ratio of 10 to 13.5 times, based on estimated 2003 earnings of the company, better known as Sinotrans.
The 1.55 billion share offer will carry an over-allotment option equivalent to 15% of the offer, sources added.
The sources said DHL Worldwide Express Inc. (X.DHL), which may buy up to US$65 million of shares in Sinotrans, is still in negotiations to take a stake.
The company has secured three strategic investors so far, who will take a total of US$46 million of shares in the company.
U.K.-based logistics company Exel PLC (U.EXE) has agreed to take a stake worth US$10 million, sources said.
New York-listed express delivery company United Parcel Service Inc. (UPS) will pay US$35 million for a stake, and Japanese transport concern Nissin Corp. ( J.NCO) will pay US$1 million for a stake, sources said.
Sinotrans, a leading freight-forwarding and logistics company in China, started a roadshow Thursday in Singapore, with bookbuilding running until Feb. 7, and listing scheduled for Feb. 13.
The price range is lower than the 11 to 18 times P/E based on forecast 2003 earnings originally expected by the market.
Credit Suisse First Boston (Hong Kong) Ltd. and BOCI Asia Ltd. are joint bookrunners for the deal.
