CSBC to be privatised

Taiwan will release 51% stake in the state-run CSBC Corporation (China Shipbuilding) by the end of this year, marking it the largest initial public offering for 2008 so far. Fubon Securities Co. will handle the issuance of 33%, or approximately NT$3 billion ($90.9 million), of the CSBC shares. Fubon Securities noted it would auction 20% of the CSBC share issue at the minimal set price of NT$13.31 (US$0.4) per share in the latter part of November.

At the end of September, CSBC saw net per share value reach NT$17.4, meaning the minimal auction price is only 77% of its net worth and bears a 23% discount. Despite the global economic recession, Cheng, CSBC chairman, believes the timing is right for CSBC`s IPO as many shipbuilders globally are consolidating, adding that CSBC would improve core operations, global competitiveness via privatization.