Glorious Property Holdings chairman Zhang Zhirong is listing his shipbuilding business China Rongsheng Heavy Industries Group Holdings to raise up to US$2.3 billion, which could make it the third biggest offering in Hong Kong this year.
The listing plan was first proposed in 2008 but was shelved due to the credit crunch.
According to the pre-listing document, Rongsheng Heavy Industries received US$250 million in investments in 2007 from investors, including New Horizon Capital, a private equity fund co-founded by Premier Wen Jiabao's son, Wen Yunsong.
New Horizon cashed in its stake in Rongsheng in August this year for US$71.76 million.
Some investors are concerned over controlling shareholder Zhang's capability to balance his resources between the property and the shipbuilding businesses. Shanghai-based Glorious Property went public in October last year, raising HK$7.89 billion.
'It's difficult to conclude that just because he [Zhang] runs two companies, it's bad news for shareholders,' Kenny Tang Sing-hing, an executive director at Redford Asset Management, said.