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Another Chinese construction giant plans to issue 2.8 bln shares in mainland market

January 31, 2008

Xinhua News Agency
28 January 2008

BEIJING -- China Railway Construction Corporation Limited (CRCC), one of
the nation's largest road project contractors, is planning to issue 2.8
billion shares in Initial Public Offering (IPO) on Shanghai bourse.

China Securities Regulatory Commission (CSRC) would consider the
company's application on Jan. 23. The company is the largest contractor
of the construction of the Beijing-Shanghai express railway.

According to the pre-released prospectus, the capital raised from the
IPO would be used to procure construction facilities, expand the
manufacturing capacity of mechanic equipments, invest in properties and
railways.

Citic Securities would lead the underwriting. The company is also
actively preparing to get listed in Hong Kong market.

The CRCC, which established its name from building the Qinghai-Tibetan
Railway, Shanghai Meglev train, Beijing-Kowloon Railway and the western
railway across Hong Kong, took the largest share of 40.3% or 33.74
billion yuan (about 4.64 billion U.S. dollars) through its two
subsidiaries in the bidding on the civil engineering of China's express
railway linking Beijing and Shanghai.

As the other major construction giant, China Railway Group Limited, has
seen share price jump by 50% since its IPO in November last year,
analysts expected the CRCC issue would also score considerable price
rises with its net profits expected to reach 3.1 billion yuan in 2007. (CMY)
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