China Railway Materials trims Shanghai IPO by 60%

China’s primary equity market is showing signs of a pick-up as issuers resurface with plans for sizable initial public offerings, betting on a market rebound in the second half. Not surprisingly, those braving the market are government-backed enterprises with strategically important businesses.

China Railway Materials, a state-owned provider of supply-chain services, is aiming to raise Rmb6 billion $942 million, or less than half its original plan in a Shanghai IPO, the company said in an initial prospectus to the China Securities Regulatory Commission CSRC. It told the environment ministry late last year that it planned to raise Rmb14.7 billion.

China requires companies with operations that...