Chinese container carrier China United Lines (CU Lines) is planning an initial public offering (IPO) at Hong Kong Stock Exchange for fleet and network expansion.

China International Capital Corporation and Citi have been appointed joint bookrunners of the company’s initial public offering.

The company said funds raised would be used to expand the company’s fleet size, including the acquisition of several new and secondhand containerships; purchasing logistics companies, expanding logistics facilities at major ports in China, Southeast Asia and North America; enlarging service network and increase investment in digital service platform and talents. 

Up to date, CU Lines operates a fleet of 33 containerships, most of them are small and middle size vessels with a carrying capacity of less than 5,300 teu. The company’s shipping network consists of 52 services, covering 57 ports from 21 countries and regions. 

The company expects to further optimise its fleet structure via introducing various sizes of vessels to meet the growing demands from global shipping industry. 

CU Lines has undertaken rapid international expansion in the last 18 months taking advantage of high freight rates and tight market conditions for container shipping.

Source: Seatrade Maritime News