Shares in Cosco Holdings, China's largest shipping firm, soared 83 percent over their initial public offering (IPO) price of 8.48 yuan, when they debuted on the Shanghai stock market on Tuesday, opening at 15.52 yuan.

 

It is a rare example of a Chinese company returning to the mainland market, said securities brokers, who anticipated that the price would rise to around 20 yuan.

 

The company offered 1.78 billion yuan-denominated shares, 20 percent of its total 8.9 billion shares. It issued 2.58 billion H-shares when it was listed in Hong Kong in June 2005.

 

The company will use the capital raised to buy 51 percent of Cosco Logistics Co. and 12 new container ships, and also to build new quays and for logistics projects, according to the listing prospectus.

 

Cosco Holdings is a subsidiary of COSCO Corporation, the country's largest ship repair and marine engineering and shipping group.

 

On June 4, China's securities regulatory body approved COSCO's IPO in Shanghai and said the company's entire capital stocks should not exceed 8.9 billion shares.

 

Cosco Holdings' share price closed Monday at 9.54 HK dollars, up 1.27 percent.

 

(Xinhua News Agency June 26, 2007)