The railway infrastructure project located at Wenzhou, Zheijang province has attracted investors from all over the world. The state backed consortium is now raising funds for the first phase that has been completed two months ahead of schedule.
The first batch of S1 line shares worth 1.5 billion yuan or US$238.89 million has been made available to investors until April but the whole lot was sold out as early as February. Half of the S1 line shares of the planned 52.22 km route was opened for purchase last December 2012. The starting price per share was at 10,000 yuan with a guaranteed annual after tax return of six percent.
For the first two days of share sales, the amount raised reached 100 million yuan. As a result of the share purchase interest, the total S1 line project cost was adjusted from 17.6 billion yuan to a whopping 43.2 billion yuan. Half of the project cost would be coming from individual investors and private companies.
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