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Zoomlion eyes IPO in HK of US$2.1b
By Richard Fu |
December 7, 2010, Tuesday
|
Print Edition
Print Edition
CHANGSHA Zoomlion Heavy Industry Science and Technology Development Co aims to raise up to US$2.1 billion in a Hong Kong initial public offering as China's economic growth spurs demand for construction machinery.
The Hunan Province-based company set a price range of HK$13.98-HK$18.98 (US$1.8-US$2.44) per share for the 870 million shares on offer in the IPO, according to a team sheet. Zoomlion plans to price the offer on December 17 and to start trading on December 23. The construction equipment maker is already listed in Shenzhen.
The IPO could help Zoomlion expand its global business as well as enhance its research capability, according to analyst Ju Houliu at China Galaxy Securities.
Zoomlion, which generated more than 90 percent of its 2009 sales in the domestic market, forecast profit to jump 76 percent this year.
Sales in China's construction machinery market is set to jump 27 percent to 400 billion yuan (US$60 billion) this year, according to the China Construction Machinery Association, as state spending on railways and factories boosted demand for cranes and excavators. Urban fixed-asset investment in China grew 24.4 percent in the first 10 months.
Despite the end of a government's stimulus package and tighter policies to curb building activities the association still expects sales to reach 900 billion yuan by 2015.
Separately, two clean energy units of China's leading power producers will price their Hong Kong IPO this week. The offers by Huaneng Renewables Corp, the wind power unit of China Huaneng Group, and China Datang Corp Renewable Power could together raise up to US$2.3 billion, adding to the record US$48.6 billion raised in Hong Kong IPOs so far this year, according to Thomson Reuters data.
The Hunan Province-based company set a price range of HK$13.98-HK$18.98 (US$1.8-US$2.44) per share for the 870 million shares on offer in the IPO, according to a team sheet. Zoomlion plans to price the offer on December 17 and to start trading on December 23. The construction equipment maker is already listed in Shenzhen.
The IPO could help Zoomlion expand its global business as well as enhance its research capability, according to analyst Ju Houliu at China Galaxy Securities.
Zoomlion, which generated more than 90 percent of its 2009 sales in the domestic market, forecast profit to jump 76 percent this year.
Sales in China's construction machinery market is set to jump 27 percent to 400 billion yuan (US$60 billion) this year, according to the China Construction Machinery Association, as state spending on railways and factories boosted demand for cranes and excavators. Urban fixed-asset investment in China grew 24.4 percent in the first 10 months.
Despite the end of a government's stimulus package and tighter policies to curb building activities the association still expects sales to reach 900 billion yuan by 2015.
Separately, two clean energy units of China's leading power producers will price their Hong Kong IPO this week. The offers by Huaneng Renewables Corp, the wind power unit of China Huaneng Group, and China Datang Corp Renewable Power could together raise up to US$2.3 billion, adding to the record US$48.6 billion raised in Hong Kong IPOs so far this year, according to Thomson Reuters data.
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