(03-10) 04:00 PDT SHANGHAI, China (AP) —

Major contractor China Railway Construction’s shares rose by a smaller-than-expected 28 percent early Monday after an initial public offering that raised $5.4 billion Д the biggest IPO so far this year.

The company’s shares began trading in Shanghai amid bleak overall sentiment, as the benchmark Shanghai Composite Index slipped 3.6 percent to 4,146.30, its lowest close in seven months.

China Railway Construction shares hit a high of 12.18 yuan ($1.71) in early trading, up 34 percent from the IPO offering price of 9.08 yuan ($1.28), before closing at 11.64 yuan ($1.63) Д a gain of about 28 percent.

The gain was smaller than average forecasts for a 43 percent rise, according to Dow Jones Newswires.

China Railway Construction raised 22.3 billion yuan ($3.1 billion) in its IPO of 2.45 billion yuan-denominated shares in Shanghai. A parallel share offering in Hong Kong raised $2.3 billion.

The company’s shares are due to begin trading in Hong Kong on March 13.

This entry was posted on Monday, March 10th, 2008 at 6:13 pm While Dave was in Money. Responses are currently closed, but you can trackback from your own site.