China's Sany Heavy Industry seeking up to HK$12.4 billion in HK listing

Sany Heavy Industry is seeking to raise as much as HK$12.4 billion (S$2.1 billion) through its Hong Kong listing, a filing showed on Monday (Oct 20), as the machinery maker taps into renewed investor appetite for Chinese listings in the city.

The company is selling 580.4 million shares in a price range of HK$20.30 to HK$21.30 each, according to the filing. Reuters reported in February that Sany Heavy was looking to raise up to US$1.5 billion.

Cornerstone investors have taken up stock worth about US$759 million in the deal, the filings showed. Singapore’s Temasek will invest about US$75 million in the stock, while Hillhouse, UBS Asset Management, BlackRock and Oaktree will also subscribe, according to the filings.

The listing underscores Hong Kong’s resurgence as the premier offshore fundraising hub for Chinese companies, as mounting US scrutiny pushes more firms to pivot away from American exchanges.

Toymaker Miniso said in late September it would spin off its brand Top Toy and list the same in Hong Kong, while Reuters has reported that China’s Momenta was mulling shifting its initial public offering to Hong Kong from New York.

Hong Kong, fuelled by the influx of Chinese companies, has emerged as the top global bourse by volume of initial public offerings and second listings so far this year, overtaking its biggest rival, the New York Stock Exchange, according to data from London Stock Exchange Group.

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Sany Heavy Industry specialises in heavy equipment, making a wide range of machinery including excavation, lifting, road construction and pile-driving equipment.

Sany Heavy Industry has operations and factories in the US, Europe, India, Brazil and Germany, as well as five manufacturing hubs in China, according to its website. REUTERS