A worker debugs a robot at a Sany Heavy Industries factory in Changsha, central China’s Hunan province, on February 20, 2020.
Chen Zeguo | Xinhua News Agency | Getty Images
China’s Sany Heavy Industries, one of Hong Kong’s biggest listed companies this year, raised HK$12.36 billion ($1.59 billion) and rose more than 3% in its Hong Kong trading debut on Tuesday.
The price of the shares was HK$21.30 per share. The listing will further accelerate Hong Kong’s equity fundraising following recent large-scale public offerings, such as Zijinjin International’s $3.2 billion initial public offering on September 30.
Sany’s Shanghai listed stocks It’s up more than 35% so far this year. Founded in 1994, the company is one of the world’s largest construction equipment manufacturers, producing excavators, cranes, road construction equipment, pile drivers and more.
China International Capital Corporation acted as the sole sponsor and general coordinator of the initial public offering. Other banks participating in the deal include BOC International, Industrial and Commercial Bank of China, Agricultural Bank of China, and China Merchants Bank.
Cornerstone’s investors include Hillhouse, BlackRock, Temasek and Infor Capital. Sanichi said it plans to use the funds for overseas expansion, research and development, digital upgrades and sustainability initiatives.
“Despite a strong international growth story and solid recent performance, Sany Heavy Industries (Hong Kong)’s listing is unlikely to significantly increase its valuation,” said Lenny Zephyrin, an analyst at Zephyrin Group.
He said investor sentiment towards China’s construction and heavy equipment sector remains cautious due to cyclical headwinds, overcapacity and limited prospects for domestic infrastructure demand.
Zephirin added that while a Hong Kong listing should increase the company’s liquidity and visibility, a rerating is unlikely unless there are meaningful gains in capital efficiency or strategy execution.
