|China's stock regulator said on Monday it had approved an application by China Shipbuilding Industry Co to launch an initial public share offer worth around $1 billion for a listing on the Shanghai Stock Exchange.
CSIC, China's top shipbuilding company, is now among about 30 companies on a list awaiting the final go-ahead from the China Securities Regulatory Commission to launch its IPO, which is typically granted within a month after the approval.
The regulator has pushed a number of companies to launch IPOs over the last few weeks. China's Shanghai Composite Index <.SSEC> has jumped nearly 90 percent so far this year, propelled by huge liquidity in the system.
CSIC plans to issue up to 2 billion A-shares denominated in the Chinese yuan <CNY="CFXS>," or 30 percent of its expanded capital after the IPO.
It needs around 6.44 billion yuan to help it fund production of spare parts for ships, enhance its supplementary shipbuilding business and improve equipment supplies, it said in a draft prospectus.
CSIC has appointed China International Capital Corp as the IPO's lead underwriter, it said.