China Zhongwang Holdings' global share offering of up to HK$12.32 billion, set to be the largest in the world so far this year, is already twice oversubscribed, sources said.
The management of the world's third-largest maker of extruded aluminium products has been on the road for the fourth day to market the offering.
Zhongwang, which makes products for the construction and industrial sectors, is forecasting a net profit of at least 1.35 billion yuan (HK$1.53 billion) for the first half, according to the final version of its listing prospectus released yesterday.
Net profit jumped 124 per cent to 1.91 billion yuan last year from 852.15 million yuan in 2007, after a profit of 551.42 million yuan in 2006.
Chief financial officer Cheung Lap-kei (right) said the Liaoning-based company had already received orders for this year, exceeding last year's turnover of 11.26 billion yuan. 'We are also optimistic of our second-half profit,' he added.
Zhongwang used to focus on the construction sector but made a strategic move in 2002 to gradually shift its sales to the industrial sector, particularly the transport industry, covering railways, vehicles and aviation.
Mr Cheung said the firm expected to get up to 80 per cent of sales from the industrial sector 'in the near future'. This segment accounted for 53 per cent of sales but 80 per cent of gross profit last year.