Sichuan Expressway on October 10 disclosed revised prospectus documents for its A-share private placement and replies to exchange inquiry letters, moving the refinancing into a critical review stage at the Shanghai Stock Exchange. After the adjustment, the total fundraising target was lowered from 3.18 billion yuan to 2.68825 billion yuan, with the company voluntarily deducting 491.75 million yuan corresponding to financial investments to prioritise smooth progress in project review. After deducting issuance expenses, 2.1 billion yuan will be used for the expansion of the Chengdu to Ya'an section of the G5 Beijing-Kunming Expressway, and 588.25 million yuan will be used to repay interest-bearing debt, with the latter accounting for 21.88 percent of total proceeds. The company explained that the estimated total investment for the expansion project is about 27.89 billion yuan, implemented under a ROT model rather than a PPP project, with a four-year construction period. The Meishan and Ya'an sections are planned to start construction first in October 2026, the Chengdu section is planned to start in May 2027, and the project is expected to open to traffic in September 2029. The after-tax internal rate of return on project capital is 6.39 percent. The issuance targets no more than 35 specific investors, with an issue price no lower than 80 percent of the average A-share trading price over the 20 trading days before the pricing base date and no lower than the latest audited net asset value per share. The lock-up period is six months. After completion, the controlling shareholder and actual controller will remain Shudao Group and the Sichuan Provincial State-owned Assets Supervision and Administration Commission. The company cautioned that the matter still requires approval from the Shanghai Stock Exchange and registration with the China Securities Regulatory Commission before implementation, and uncertainties remain.
Sichuan Expressway Co LtdRevised A-share private placement lowers fundraising target to 2.688 billion yuan, with 2.1 billion for the Chengdu-Ya'an expressway expansion and 588.25 million to repay interest-bearing debt, advancing the refinancing review.
