SHANGHAI Jin Jiang Shipping, the liner subsidiary of Shanghai International Port Group (SIPG), has submitted its application for an initial public offering (IPO) to the Shanghai Stock Exchange.
Commonly referred to as JJ Shipping, the firm will issue 190,412 shares, 15 per cent of its stock to be floated, allowing SIPG, which operates most of the container terminals in Shanghai port, to maintain control.
Currently, SIPG owns 98 per cent of JJ Shipping, the remaining 2 per cent held through another subsidiary, Shanghai Port International Passenger Center.
Guotai Junan Securities is the sole bookrunner for the IPO, first mooted in 2021. No fundraising target or listing timeline was disclosed in the listing prospectus.
Primarily an intra-Asia carrier, JJ Shipping entered the long-haul trades in 2021 after purchasing slots on Alibaba affiliate Transfar Shipping's transpacific service, reports London's Loadstar.
The company says in its prospectus it will use the IPO proceeds to expand its fleet, particularly building smart and eco-friendly ships, and digitalise its logistics services.
Specifically, JJ Shipping plans to build six 1,800 TEU and two 2,400 TEU ships. Its subsidiary, Shanghai Hai Hua Shipping, plans to spend CNY211 million (US$31 million) on two 1,000 TEU ships for domestic coastal services.
Currently, JJ Shipping is the 35th-ranked liner operator, with a total capacity of nearly 40,000 TEU on 29 owned ships and 13 chartered vessels. The fleet is dominated by 1,100 TEU vessels. It has four 1,900 TEU ships on order at Yangfan Group for delivery this year.
JJ Shipping said: "Investing in new shipping capacity will improve our cost advantage and enhance the company's competitiveness. To suit our expansion strategy in South-east Asia and other markets, the company will expand the fleet size in a timely manner and improve the ratio of owned and chartered capacity of the route, so as to cope with market fluctuations."
Addressing growing calls for shipping to slash emissions to meet the global target of decarbonization by 2050, JJ Shipping said it would accelerate the pace of 'green' and low-carbon vessel construction.
JJ Shipping added, "We will steadily demolish old ships, prioritizing the application of fuels such as LNG and methanol on new ships."
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