• Fri
  • Oct 31, 2014
  • Updated: 5:06pm

Dalian firm aims to raise 800m yuan in HK float

PUBLISHED : Wednesday, 07 June, 2006, 12:00am
UPDATED : Wednesday, 07 June, 2006, 12:00am

DHI DCW Group, a Dalian-based heavy equipment manufacturer, plans to raise 600 million to 800 million yuan through an initial public offering in Hong Kong next June, mayor Xia Deren said yesterday.


The group, a major supplier of cranes, machinery for bulk handling and metallurgical machinery on the mainland, is in talks with strategic investors from 'Hong Kong and America, including one of the world's biggest finance groups', according to Mr Xia.


He said the group would select bookrunners by the end of the year when it finished a planned restructuring.


He expected the group to be listed in Hong Kong by June next year.


At the end of last year, the group had net assets worth 1,227 million yuan and 5,957 million yuan in liabilities.


If the listing is successful, it will be the northeastern port city's second capital-raising exercise in Hong Kong after Dalian Port (PDA) Co's $2.16 billion float in April.


'We thought about listing the group in Shanghai, but after seeing [the success of] the Dalian Port listing in Hong Kong, we decided to list it here. You cannot raise such a large amount of funds on the mainland stock markets,' Mr Xia said.


Mr Xia is in Hong Kong looking for investors in 10 large state-owned enterprises as part of a restructuring of all state-owned enterprises in Dalian.


The 10 companies, including three equipment manufacturers and seven public utilities, have assets worth 35 billion yuan.


Three other state-owned companies - Dalian Gas, Dalian Municipal Engineering Corp and Dalian Bingshan Group, an equipment and garment trading company - yesterday signed agreements with investors.


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