Hong Kong: Sany Heavy Industry Co has started taking investor orders to raise as much as HK$12.4 billion or about US$1.6bil in a Hong Kong listing, joining the flood of Chinese companies seeking to capitalise on the Asian financial hub’s hot market.
The excavator maker is offering 580.4 million shares at HK$20.30 to HK$21.30 apiece, according to a filing yesterday.
Proceeds may increase by as much as 32% if options to enlarge the deal are exercised, and the trading debut is scheduled for Oct 28.
Sany Heavy is already listed in mainland China and has a market value of about US$27bil. The Hong Kong offering indicates a discount of as much as 17% to Sany Heavy’s closing price of 22.50 yuan or about US$3.15 in Shanghai last Friday.
It’s the latest billion-dollar deal to come to Hong Kong, which is headed toward its best year for new listings since 2021.
More are coming as the city, home to two of the world’s three biggest such deals this year, has more than 200 companies lining up to go public there, according to its financial secretary.
Temasek Holdings Pte Ltd, Hillhouse Investment and BlackRock Inc were among cornerstone investors that agreed to buy about US$758mil of Sany Heavy’s offering in exchange for holding the stock for at least six months.
Founded in 1994, the company is the flagship of the Sany Group. Profit is poised to rise 46% to a four-year high of 8.7 billion yuan this year, according to the average analyst estimate compiled by Bloomberg. — Bloomberg
