(Yicai Global) June 16 -- China Railway Construction has become China's first mainland-listed firm to reveal listing plans of one of its units on the fairly fresh Star Market.

China Railway Construction Heavy Industry is seeking CNY7.8 billion (USD1.1 billion) via its Star Market initial public offering, the third-biggest target on the board, according to its prospectus published on the Shanghai Stock Exchange's website yesterday. Only Semiconductor Manufacturing International and China Railway Signal & Communication have set their sights higher.

The Changsha-based equipment manufacturing unit plans to use the funds for research and development, as well as to build facilities and supplement working capital, the filing shows. CRCHI could also issue shares later in Hong Kong, according to the parent's earlier announcement.

Last year, CRCHI narrowed its net profit to CNY1.5 billion after logging CNY1.6 billion the year before, according to its earnings reports. Its revenue fell to CNY7.3 billion from CNY7.9 billion.

The parent has a 99.5 percent direct stake in the IPO-hopeful, and even holds the remainder indirectly. After the share issuance, CRC intends to remain the controlling shareholder of the spinout.

Beijing-based CRC went public in Shanghai in March 2008, and shortly after issued shares in Hong Kong.

Editor: Emmi Laine