German giant's interest lends support to first mainland firm to go public this year
German engineering giant Siemens will spend up to $270.53 million to buy 5 per cent of Shanghai Electric Group's initial public offering, giving it 1.25 per cent of the mainland conglomerate after the flotation.
The investment pledge will shore up interest in the Hong Kong share offering - the first by a leading mainland company this year - which aims to raise $5.41 billion later this month.
According to the preliminary listing prospectus, Siemens has pledged to buy up to 153.71 million new shares of Shanghai Electric and agreed to a one-year lock-up period.
Siemens has three joint ventures with Shanghai Electric producing turbines, generators and power transmission equipment.
Shanghai Electric is heavily diversified, manufacturing products from power equipment to high-rise lifts and waste treatment units.