Monday, April 18, 2011

Cosco rises on hopes of parent's listing plans

Shares of Singapore-listed Chinese shipbuilder Cosco Corp (Singapore) (COSC.SI) rose as much as 2.6% on Monday to a near three-month high on hopes that its parent may inject some assets into the firm if it does a group listing, traders said.

At 10:24 a.m., Cosco shares were 2.2% higher at $2.38 with over 10.4 million shares.

China Cosco Group, the country’s top shipping conglomerate, is still working on plans for a group listing, the Shanghai Securities News said on Friday, citing a top executive, though no timetable was given.
 
“If there’s a restructuring of the whole group and they do an IPO, there’s a chance that they could inject some shipyard assets into the Singapore-listed entity and this would benefit Cosco Singapore,” said a local trader.
 
Cosco’s shares were also buoyed by expectations that it could see more orders for oil rigs, and Citigroup highlighted in a note that the market has underestimated Cosco’s transition from a ship to a rig builder. 
 
“Despite recent contract wins, orderbook has momentum to accelerate further,” Citi said.
 

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