Chigo Group, a mainland manufacturer of air-conditioners, and China ITS (Holdings), a technology solutions provider for transport infrastructure, are seeking to raise as much as US$330 million by selling shares in Hong Kong next month, sources said.
The city's market for initial public offerings has been quiet recently with only one issue over the past two months because of poor investor sentiment and the traditional summer holiday break.
Chigo, the country's fourth-largest air-conditioner maker with a 7 per cent market share, plans to raise as much as US$180 million late next month to fund capacity expansion, a sales memorandum sent to fund managers says.
The firm had mandated BNP Paribas to lead the transaction and it would meet fund managers in Hong Kong from Monday to Wednesday for the first round of background briefings, one source said.
The formal roadshow timetable would only be determined if the company received a positive and solid response to the pre-marketing efforts, the source said.
'It's an appropriate time to pitch investors, as most of them have come back to work after the summer break,' the source said.