Sany Heavy Industry seeks $1.6 billion in Hong Kong listing
Company earmarks 45% for global sales, service network development
Sany Heavy Industry Co. started taking investor orders to raise as much as HK$12.4 billion ($1.6 billion) in a Hong Kong listing, joining the flood of Chinese companies seeking to capitalize on the Asian financial hub’s hot market.
The excavator maker is offering 580.4 million shares at HK$20.30 to HK$21.30 apiece, according to a filing Monday. Proceeds may increase by as much as 32% if options to enlarge the deal are exercised, and the trading debut is scheduled for Oct. 28.
Sany Heavy is already listed in mainland China and has a market value of about $27 billion. The Hong Kong offering indicates a discount of as much as 17% to Sany Heavy’s closing price of 22.50 yuan in Shanghai on Friday.
It’s the latest billion-dollar deal to come to Hong Kong, which is headed toward its best year for new listings since 2021. More are coming as the city, home to two of the world’s three biggest such deals this year, has more than 200 companies lining up to go public there, according to its financial secretary.
Temasek Holdings Pte, Hillhouse Investment and BlackRock Inc. were among cornerstone investors that agreed to buy about $758 million of Sany Heavy’s offering in exchange for holding the stock for at least six months.
Founded in 1994, the company is the flagship of the Sany Group. Profit is poised to rise 46% to a four-year high of 8.7 billion yuan this year, according to the average analyst estimate compiled by Bloomberg.
It was a busy day in Hong Kong for public offerings as three others — Bama Tea Co., Beijing Deepexi Technology Co. and CIG Shanghai Co. — also started taking investor orders. Bloomberg Intelligence estimates total proceeds from new listings in the city will double to more than $26 billion in 2025.
As to Sany Heavy, it plans to use about 45% of proceeds for developing its global sales and service network, 25% for enhancing research and development, 20% for enhancing its overseas manufacturing and boosting efficiency, and the rest for working capital and general corporate purposes.
Citic Securities Co. and China International Capital Corp. were overall coordinators of Sany Heavy’s listing.
— By Dave Sebastian (Bloomberg)
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