Changsha Zoomlion Heavy Industry Science and Technology Development plans to raise as much as HK$16.5 billion in a float of its shares on the Hong Kong stock market, while polymer manufacturer China New Materials Holdings has cancelled its listing plan after a lawsuit was filed in a Hong Kong court.
Zoomlion, the second-largest maker of construction machinery on the mainland and the world's 10th largest by turnover, aims to raise between HK$12.16 billion and HK$16.5 billion from a global offering of 869.582 million shares.
The offer price ranges from HK$13.98 to HK$18.98 per share and 95 per cent of the shares will initially be offered in an international placing and about 5 per cent in a Hong Kong initial public offering. The Hong Kong IPO will begin today and close on Thursday. Trading of shares is expected on December 23.
Based in Changsha, the capital of Hunan province, Zoomlion listed in Shenzhen in 2000. The machinery maker said it planned to use 45.8 per cent of the net proceeds to strengthen and enhance manufacturing capability of key products, parts and components.
It owns eight manufacturing facilities in Hunan and Shaanxi provinces, and in Shanghai.
It also plans to spend 28 per cent of the net proceeds to expand operations overseas, with the rest of the proceeds for research and working capital.
From 2007 to last year, Zoomlion's turnover grew by a compound annual rate of 52.1 per cent to 20.76 billion yuan (HK$24.25 billon) from 8.97 billion yuan, while net profit showed a compound annual growth rate of 29.7 per cent to 2.42 billion yuan from 1.44 billion yuan.
