Cosco Shipping Energy plans A-share issue to expand fleet

COSCO SHIPPING Energy Transportation (SSE:600026) announced its plan to issue A-shares to specific investors, seeking up to CNY 8,000 million to enhance its fleet. The funds will be used to construct six Very Large Crude Carriers (VLCCs), two LNG carriers, and three Aframax crude oil tankers. COSCO SHIPPING Energy’s major shareholders, including China Shipping Group, have committed to subscribing to 50% of the A-shares. Approvals have already been secured from the Shanghai Stock Exchange and the China Securities Regulatory Commission, and a shareholder meeting is scheduled to approve the deal. Guotai Haitong Securities will be the lead underwriter for the deal, and the law firm will be Grandall Law Firm. With increased capacity in VLCC and LNG vessel construction, COSICO SHIPPING plans to capture increased traffic of Liquified Natural Gas and oil to better fulfill government’s energy needs.