China Knowledge reported that Daqin Railway Co Ltd aims to raise up to CNY 16.5 billion through a new share offering.

The company said in a statement filed with the Shanghai Stock Exchange that it plans to issue less than 2 billion A shares at CNY 8.37 apiece October 22.

Proceeds from the issues will be used to acquire the assets and equities of the transportation business in Taiyuan in Shanxi Province. The acquisition includes seven trunk railways and five branch railways with 438 locomotives and 1,286 coaches, a 41.16% stake in Shuozhou-Huanghua Railway and a 90.2% stake in a loading and unloading company of the Taiyuan Railway.

Upon the completion of the acquisition, Daqin Railway coal transportation business will expand to the whole areas of Shanxi Province.

(Sourced from China Knowledge)