SANY Heavy Industry, China’s largest construction machinery maker, aims to raise up to HK$26bn (£2.1bn) in what could be Hong Kong’s second-biggest stock offering this year, as it defies volatile markets to fund an expansion.
Sany Heavy’s offering is one of several deals that are pushing through Hong Kong’s narrowing initial public offering window, with most stock market sales pulled or on hold until markets steady across the globe.
The company, controlled by China’s richest man, Liang Wengen, is offering 1.34bn shares for HK$16.13 to HK$19.38 each, putting the total offer value at up to HK$25.97bn.
The sale would be the biggest since commodities trader Glencore raised nearly $10bn in a dual listing in Hong Kong and London in May and would top a $2.5bn initial public offering by luxury goods maker Prada in June.
“Selling H-shares would help Sany build its international branding and would play an important role in accelerating its exports and international expansion,” said Zou Runfang, analyst at China Galaxy Securities.
“However, the current market sentiment may hurt demand for its H-shares in the short term.”
Sany, often referred to as China’s Caterpillar, and rival XCMG Construction Machinery have benefited from China’s construction boom in recent years.
City A.M. Reporter