In a bid to fund the expansion of a business park in Shenzhen, China, the world’s largest manufacturer of shipping containers China International Marine Containers Group is planning to sell more than US$920 million worth of shares, according to Bloomberg.
It was reported that the company is looking to sell shares to a maximum of 10 investors.
This decision follows current turbulence in the market place, particularly in the shipping industry, as shipping companies incur losses as a result of slumping freight rates and overcapacity.
This is in line with recent Drewry findings that further losses are expected to take place in H1, 2016, brought about by overcapacity and lower rates, and is anticipated to cause a ‘trigger point’ in the industry.
It could be that the only practical way for carriers to recover from this low point is to allow supply-demand to rebalance naturally.