Shenzhen Powercom and Asia Printers Group are expected to list later this year.
Powercom, a wireless network equipment provider whose investors include Standard Chartered Private Equity, was expected to gain clearance 'fairly soon' for a listing to raise US$150 million to $200 million, sources said.
It is targeting a listing by the end of the year, with details expected to be announced in the next few weeks. Powercom's application was submitted within the past two months, with UBS acting as lead sponsor.
Market observers believe Powercom's application was prompted by its private equity shareholders. This year, the company raised about US$26 million from private equity funds including CDC Capital Partners, Standard Chartered Private Equity and Jafco. The three funds together took a stake of less than 10 per cent.
Powercom provides wireless communications systems to mainland telecommunications operators and is poised to expand into provision of third-generation network components on the mainland. Its customers include China Unicom and China Mobile.
A source estimates the company made a profit of about HK$100 million on a turnover approaching $1 billion last year.