Big share offerings expected to hit soon
The market is holding its breath in anticipation of several huge initial public offerings, including one by Haitong Securities, materialising in the next two months.
Sources said Haitong, which scrapped its HK$13 billion listing plan in December last year, had submitted updated financial data to the Hong Kong stock exchange and would probably list by June. Further listing details such as deal size and price range were not available.
Most of the big initial public offerings worth more than US$1 billion that were put on hold last year were now pencilled in for the next two months, the sources said, provided the market stayed stable. About 40 offerings were pulled back last year because of poor market sentiment.
The Hang Seng Index last year fell about 20 per cent but has been on the rise this year, rebounding by about 15 per cent. Yesterday, it edged up 0.23 per cent on a moderate turnover of HK$54.2 billion.
Apart from Haitong, other share sales expected in the second quarter include mainland machinery maker XCMG, which had initially planned to list in September to raise US$1.2 billion. Shanghai Fosun Pharmaceutical is another candidate.
However, heavy machinery manufacturer Sany Heavy Industry may have to further delay its US$3.3 billion listing plan because of complications following its acquisition of Putzmeister, a German maker of high-technology concrete pumps.
Sany, together with a private-equity firm controlled by government-owned investment group Citic, bought out the German company in January for Euro360 million (HK$3.67 billion). But the Shanghai-based employees of Putzmeister went on strike last month over fears of job losses and pay cuts.
A source close to the deal said Sany might not be able to submit new financial data, which should ideally include the specifics of the Putzmeister acquisition, to the HKEx in time to list in the second quarter.
Sany had earlier announced its sales growth might halve to 25 per cent this year as a result of a slowdown on the mainland. Its sales were expected to cross 100 billion yuan (HK$122.6 billion) this year, from 80 billion yuan last year and a little over 50 billion yuan in 2010.