Listing candidate Shanghai Prime Machinery is exploring overseas markets to maintain strong growth as it aims to be the world's largest turbine blades supplier.
The subsidiary of state-owned Shanghai Electric Corp, seeking as much as $1.2 billion in an initial public offering, aims to sell 600 million new H shares at a price range of $1.70 to $2.10 per share.
The pricing represents 10.52 to 13 times estimated earnings of no less than 225 million yuan this year.
The company will launch today its Hong Kong public offering of 60 million H shares, or 10 per cent of its global offering.
The offer will close next Thursday and shares will start trading on the stock exchange on April 27.
Credit Suisse is sponsoring the flotation.
Brokers expect the offering to be well received as investors are on the lookout for good mainland stocks.