Ningbo Port, one of the mainland's largest, will sell shares in Shanghai next year, with Hong Kong as a possible subsequent listing venue, the South China Morning Post reported.

"The company's application for a listing in Shanghai is pending approval. We don't rule out a listing in Hong Kong. The details and timing depend on market conditions," said a Ningbo Port executive.

The decision to list in Shanghai before Hong Kong is in keeping with the mainland government's wishes.

The state-owned port aims to raise about US$1.5 billiion and has hired BOC International to advise on the A-share listing.

Earlier reports said the company planned a dual listing in Hong Kong and Shanghai in which it hoped to raise as much as $3.1 billion.

In the first 11 months of this year, container throughput at Ningbo, the fourth-largest mainland container port, dropped 5.7 percent to 9.58 million TEUs. However, overall cargo throughput rose 3.5 percent to 315 million tonnes in the first 10 months.

"The government has been trying to persuade most mainland companies to list in Shanghai first, especially state-owned enterprises. The government wants to increase the valuation of the country's own stock markets. It's logical," said Nomura analyst Jim Wong. It is possible to list in Hong Kong, but the share price is usually lower than in Shanghai."

Typically, valuations in Shanghai were 30 percent higher than in Hong Kong, another analyst said.
 
 
Source: cargonewsasia