sinotrans-prices-at-top-on-positive-outlook

Sinotrans prices at top on positive outlook

Expectations of continued strong demand for dry-bulk goods offsets the impact of volatile markets, allowing the shipping company to raise $1.47 billion.

By Anette Jönsson

November 18, 2007

Chinese shipping services provider Sinotrans Shipping has priced its Hong Kong initial public offering at the top of the range for a total deal size of HK$11.45 billion $1.47 billion after investors seemingly chose to ignore the current volatility in the local market and focus instead on the positive outlook for dry-bulk freight rates.

ôMost people are positive about freight rates for 2008 and going into 2009, and while they are not so sure after that, this is beyond most peopleÆs immediate investment horizon anyway,ö one source remarks.

The Baltic Dry Index, which is the benchmark gauge of dry cargo freight rates, has soared from about 3,000 points a year ago to more than...

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