CICC Assists in CRSC Listing on SSE STAR Market among First Batch of Issuers

China Railway Signal & Communication Co., Ltd. (“CRSC”, or the “Company”, stock code: 688009.SH) has been successfully listed on the SSE STAR Market on July 22, 2019. China International Capital Corporation Limited (“CICC”) acted as Sole Sponsor and Lead Underwriter in this transaction. This was an initial public offering of 1.8 billion ordinary shares, representing 17% of the enlarged capital. The Company has received total proceeds from this offering of RMB10.530bn. CRSC is the only SOE and the largest issuer by financing amount among the first batch of issuers as well as the first H-share company to land on the SSE STAR Market, setting multiple records.

CRSC was established in December 2010 and is a large SOE under the direct supervision of the SASAC. It is a high-tech industry group characterized by rail transportation control technology and the world’s leading provider of rail transportation control systems. The Company boasts a complete industrial chain from design and R&D to manufacturing and engineering services of rail transportation systems, and is China’s competent management authority of equipment modes, technical standards and product standards. CRSC is a core enterprise for safe operation of China’s rail transportation, a representative of the national industry of train control system technology for high speed railways (“HSRs”), and a leader with key technologies for HSRs in global railway industry. As of December 31, 2018, the Company recorded total assets of RMB79.679 bn and net assets attributable to shareholders of RMB28.908 bn. In 2018, CRSC realized operating revenue of RMB40.013 bn and net profit attributable to owners of the parent company of RMB3.409 bn.

CICC worked closely with the Company and helped overcome obstacles during execution, closing the deal within 5 months. The execution team won high recognition from the client: to secure the Company’s position on the list of the first-batch issuers to land on the SSE STAR Market, CICC closely followed the overall execution and each workstream, maintained sound communication with regulators and spared no efforts in working out solutions to challenges in regulatory approval. Originally being the 79th applicant accepted by the SSE, the Company eventually became the 20th company approved for IPO by the Listing Committee and the 6th company successfully registered with the CSRC. The successful offering represents the CRSC’s another significant breakthrough in the capital market following its H-share listing.

Benefiting from in-depth understanding of the rail transportation control system industry and the client, CICC accurately grasped the competitive advantages of the Company, which was widely received by the capital market. It also helped the Company secure 28 strategic investors and complete the strategic placement participated by 572 senior executives and core employees. In addition, CICC actively seized the opportunity for innovation brought by the SSE STAR Market and provided top-class capital market services. In this deal, the Company’s A shares were issued at market oriented price, which was conducive to reasonable appreciation of the value of state-owned assets and demonstrated CICC’s capabilities of safeguarding SOE clients’ interests and supporting clients’ development.

As a leading, people-oriented investment bank with Chinese roots and international reach and serving the nation with integrity, CICC is committed to providing high-quality and value-added financial services for its clients. Relying on extensive capital market experience and seamless onshore and offshore services, CICC will continue to provide first-class financial services and assist clients to achieve their strategic goals of development.