Zoomlion counting on $2.1 billion IPO
Zoomlion could raise $2.1 billion in Hong Kong to boost growth
Zoomlion is hoping to raise between HK$12.1 billion and HK$16.5 billion (US$1.57 billion to $2.1 billion) as it prepares to issue an initial public offering (IPO) in Hong Kong.
The Changsha-based construction machinery said in its prospectus to investors that it hopes to take advantage of position in the Chinese market which its says now accounts for 42.6% of global sales and where the company generates 90% of its sales.
The IPO comes on the back of Zoomlion recording third-quarter net income increase of 45% to 924 million yuan (US$150 million).
Zoomlion rival Sany, which was recently recognised by the State Intellectual Property Office (SIPO) and the World Intellectual Property Organization (WIPO) for energy-saving developments in concrete pumps, raised US$308 million from its own IPO in Hong Kong last year. In June this year, it announced that it was considering a further US$1.5 billion raise.