Jiang Yanfei, CEO of toll-road operator China Merchants Holdings (Pacific) (CMHP), is on a fundraising drive to finance the recently completed acquisition of the Yongtaiwen expressway in eastern China. It is the first time in seven years that the Mainboard listed company has made any acquisition, and Jiang says more such deals could be announced in the next year.

CMHP became a toll road operator in 2004, when its parent, the state-owned China Merchants Group (CMG), injected five toll roads into the company. Since then, analysts have touted the possibility of CMHP gradually acquiring more toll roads from its parent. Yet, it wasn’t until July that it obtained approval from the authorities for the purchase of a 51% stake in the Yongtaiwen expressway for RMB 2.2 billion ($442 million)

For investors, the deal appears to have been well worth the wait. The expressway stretches 138km through Zhejiang province’s Wenzhou ...