China Zhongwang Holdings, the mainland's largest producer of processed aluminium products, launched its initial public offering yesterday, a deal market observers said would be a crucial test of investor appetites after an eight-month drought of big listings.
Market watchers said Zhongwang could draw adequate orders for its US$1.58 billion offering, thanks to its unique position in the mainland's transport sector as well as the recent market rally in the region.
Zhongwang's offering is set to be the largest in the world so far this year, after health-care company Mead Johnson's US$828 million deal completed in February, according to figures from Thomson Reuters.
The offering was also expected to be the biggest in four years after German television company Premiere raised US$1.57 billion in March 2005.
There have been no sizeable offerings in Hong Kong since China South Locomotive & Rolling Stock Corp's US$535 million deal in August last year. However, seven smaller listings in the first four months this year raised a combined US$335 million.
'The response to Zhongwang's deal will be a reflection of whether the market has turned positive. If it can draw a strong reaction, it may boost confidence,' a fund manager said.