Fujian Guohang Ocean Shipping has recently announced its plans to establish 12 wholly-owned shipping companies in Hong Kong. This initiative is part of a new investment worth approximately 2.49 billion yuan (372 million dollars).
Details of the New Companies' Establishment
This company, listed on the Beijing Stock Exchange, announced on October 12 that its board of directors has approved the establishment of these companies through Guohang Ocean Shipping (Hong Kong) Holdings. Each of these companies will be established with a registered capital of 100,000 dollars, which collectively amounts to a total capital of 1.2 million dollars.
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Investment Plans for Shipbuilding
This action is part of the group's plans to expand its international shipping operations, and a separate company will be established for each ship. Among these 12 companies, six will be created to support an investment program for the construction of ships that has already been announced. This program includes the construction of three multipurpose ships with a capacity of 62,000 tons and three LR2 tankers with a capacity of 115,000 tons.
Fujian Guohang estimates that the investment in these six ships will be around 2.49 billion yuan (372 million dollars) and intends to raise 700 million yuan (105 million dollars) through a private stock offering. Of this amount, 680 million yuan (102 million dollars) will be allocated for ship construction and 20 million yuan (3 million dollars) for working capital. The remaining investment in ship construction will be sourced from internal resources and external financing.
Fujian Guohang has not yet identified the shipyards that will be responsible for building these ships. These changes in Hong Kong come as the company recently shelved its plans for a secondary listing on the Hong Kong Stock Exchange and is instead seeking to attract investment through domestic stock offerings to support fleet investment and strengthen its capital structure.
Fujian Guohang has always focused on dry shipping, but its recent investment plans indicate an expansion towards tankers and specialized multipurpose ships. The company's previous activities included projects for building methanol carriers and investments in a series of conventional cargo ships.
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