3 mainland firms eye US$900m from IPOs
Mainland firms BBMG Corp, Bawang International and Lumena Resources plan to raise as much as US$900 million from initial public offerings in Hong Kong over the next two months to take advantage of the rising stock market, sources said.
The three companies' share offerings follow aluminium maker China Zhongwang Holdings' HK$9.8 billion fund-raising late last month, the city's largest share sale this year. Zhongwang's shares will begin trading on Friday.
'If the market holds steady, we'll begin to see much stronger activity in the initial public offering market in the third and fourth quarters,' one corporate finance lawyer said.
BBMG, one of the mainland's top construction material makers, plans to raise about US$500 million. It is awaiting approval from the China Securities Regulatory Commission before seeking approval from the Hong Kong exchange's listing committee.
UBS and Macquarie are arranging the transaction.
Beijing-based BBMG is the largest cement maker and second-largest concrete producer in the capital. It is also involved in property development and management.
Its production capacity is 15 million tonnes of cement and 2.8 million cubic metres of concrete per year.
Bawang, a personal care product maker and distributor, plans to raise at least US$200 million in a deal arranged by Morgan Stanley and HSBC. The firm will sit before the listing committee late next month.
Lumena, a sodium sulphate producer, plans to raise up to US$200 million in a share offering this month. BOC International and Credit Suisse are arranging the deal.
Coming to market
Aluminium maker China Zhongwang Holdings late last month raised, in HK$: $9.8b
