Dec 10, 2018 (China Knowledge) - China’s COSCO Shipping, one of world’s largest shipping lines, may consider raising funds from the London Stock Exchange through the Shanghai-London Stock Connect. Under the rules of the stock connect, companies listed in the two cities can apply for floatation on each other’s exchanges through the issuance of depositary receipts.
COSCO Shipping is currently looking at the possibility of issuing Global Depository Receipts (GDRs) in London. However, no decision has been taken yet as any GDR issuance is still subject to regulatory approvals. The shipping company is currently listed in Shanghai and Hong Kong.
The company continues to face pressure in the shipping market due to oversupply and uncertainty over the trade war. It is currently looking to expand its activities globally and has made several acquisitions recently.
Earlier this year, COSCO acquired Hong Kong’s Orient Overseas International for USD 6.3 billion to strengthen its position as a global shipping leader. The company also bought a majority stake in Greece’s Piraeus port in 2016 and may continue to acquire more European assets.
According to sources, the company’s officials had met with Britain’s shipping minister in hopes of boosting trade between the two countries. Should COSCO move ahead with the London floatation, the company will be looking to raise a large amount of capital to make it worthwhile for investors.
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