Sany Heavy Industry Co. is considering holding an initial public offering in Hong Kong and is currently gauging investor interest, the Wall Street Journal reports. The company is looking to raise about $2 billion with order-taking from institutional investors set for July 23, according to people close to the situation.
The company, listed in Shanghai and based in Changsha, China, hopes to list in Hong Kong in August, if market conditions are propitious, the sources said. Its prospectus indicates that Sany Heavy hopes to use the proceeds from the IPO to expand overseas. The company wants to invest U.S. $55 million to build six new warehouses in the U.S., Germany, India, Turkey, the United Arab Emirates and Egypt to store parts and components. Sany recently paid more than $400 million to acquire Putzmeister, the world’s largest concrete pump manufacturer.
Sany Heavy is the largest of a group of Chinese construction manufactures that includes Zoomlion, XCMG Group and Guangxi LiuGong Machinery Corp.
Likely underwriters of the IPO include Bank of America Merrill Lynch, Citigroup, Commercial Bank of China and Morgan Stanley.
