Railway Signaling Considered as New Frontier in Rail Technology, China
Published By : 07 Aug 2015 | Published By : QYRESEARCH
The Chinese do not rest to dominate the global rail-technology industry. However, they have their eyes set on the high-margin signaling business.
The Railway Signal & Communication Corp made its first listing in Hong Kong on Friday. It will use around 20 percent of the proceeds from IPO domestic and other overseas acquisitions. However, it plans to spend more undefined portion on the future research and development.
The shares increased HK$11 billion ($1.4 billion) in the initial public offering. The values are at about HK$55.1 billion. The shares have increased 0.3% to HK$6.32 on Friday.
The ‘One Belt, One Road’ drive in the country will benefit the company and help them start expanding their business across the globe, added analyst at Sanford Bernstein, HK. He referred to the development framework disclosed in October 2013. The drive aims to build new economic links and retrace the traditional trading route.
Rail was the 10th ranking company in China to advance in industrialized economy, as listed in March. The corporation merges economies and contends more insistently for overseas rail deals.
On Friday, the maker filed pre-listing documents with the HK stock exchange and plans to increase as much as $400 million, reported IFR Asia.
Rail signal markers have been growing and expanding their business in the global market. Their transportation control system enables control of speed enhancing the efficiency and safety.
The overseas business accounted for 4.4% of China Railway Signal’s and says many challenges remain in China still. One of the restraints is the issue of safety.
China Railway Signal was among the most eminent parties. It designed control-system machines that caused the accident and malfunctioned. However, in this light, the company plans to rectify any failures and improve the internal control mechanisms.