China National Machinery Industry Corp (Sinomach), a state-owned machinery maker and engineering contractor, aims to raise HK$3 billion by floating shares of its power engineering unit in Hong Kong this year.
The unit, China National Machinery & Equipment Import & Export Corp (CMEC), the mainland's largest international power station contractor, has mandated BOC International to handle the initial public offering.
Sinomach chairman Ren Hongbin said the timing of the listing was still pending approval from the China Securities Regulatory Commission.
Mr Ren said proceeds from the stock offering would be used mainly for expanding CMEC's core power engineering operations in developing countries and for its investment in overseas mining projects.
CMEC has exported and installed more than 10 million kilowatts of power capacity, accounting for more than 70 per cent of the country's exported power generators, according to the Beijing company's website.
It has business relationships with more than 120 countries and regions, with a focus on emerging markets. Its projects include the Kuching Thermal Power Station in Malaysia, the Sahand Power Station in Iran and the Guddu Power Station in Pakistan.
Sinomach, which designs and manufactures machinery for the transport, energy, construction, vehicle, shipbuilding and mining industries, is one of the 150 state-owned enterprises under the leadership of the State-owned Assets Supervision and Administration Commission.