China’s Dongfang Shipbuilding plans AIM listing this week to boost Europe appeal

 
Steve Dinneen
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DONGFANG Shipbuilding will list on the AIM market later this week in a bid to boost its European profile.

The Chinese firm will not initially raise new funds through the listing, although finance director AKM Ismail told City A.M. this will be a consideration in the coming months.

Around 29 per cent of the firm’s stock will be listed, with chief executive Chen Tongkao maintaining his 71 per cent stake.

The stock to be listed, which is currently held by retail investors, has a value of around £10m.

Finance director AKM Ismail said: “Thursday’s listing is primarily an introduction to the market, to give investors a feel for the company. There will probably be a fundraising in the future.

“We want to differentiate us from all the other shipbuilders in China. A large proportion of our customers are based in Europe so this will help being us closer to them.”

Dongfang Shipbuilding manufactures small and medium size vessels such as chemical tankers and multi-purpose container ships from two shipbuilding yards in Anhui and Zhejiang provinces in China.

Tongkao said: “The admission to AIM is a significant step in our development, as it will raise Dongfang’s profile to potential customers across Europe and enhance the Group’s standing with its partners.

“There are considerable opportunities in our sector, and with access to capital markets the group will be well placed to make acquisitions in the future. The board looks forward to working with its shareholders to drive our businesses forward.”



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