LK Machinery, the mainland's largest die-casting machine manufacturer, plans to raise up to HK$300 million in a Hong Kong initial public offering this month to expand its production capacity, market sources said.
The company, which won stock exchange listing committee approval on Thursday, has kicked off its presale marketing as it rushes to sell its shares before the six-month effective period of its financial accounts lapse, the sources said.
Taifook Capital is the sole sponsor for the share sale.
The Hong Kong-based company's business includes hot/cold chamber die casting, injection moulding, and alloy die-casting machines, which are used widely in manufacturing sectors ranging from cars and aviation to telecommunications.
Shanghai YiYang Hardware, one of eight LK Machinery production outfits across the mainland, specialises for instance in making high-grade aluminium alloy wheel hubs for vehicles, according to the company's website.
LK Machinery made about 1,500 units of die-casting machines last year, capturing almost half of the mainland market, the sources said.