Sany Heavy says gets China's nod for $3 billion HK IPO

SHANGHAI | Wed Aug 24, 2011 3:42am EDT

SHANGHAI (Reuters) - China's Sany Heavy Industry Co Ltd (600031.SS) has obtained approval from the country's securities regulator for an about $3 billion share offering in Hong Kong, joining a long list of Chinese companies jostling to a list there amid market volatility.

The China Securities Regulatory Commission (CSRC) had approved Sany Heavy's plan to issue up to 1.54 billion shares in the Hong Kong offering, the company, which makes construction machinery such as concrete pumps and truck cranes, said in a statement to the Shanghai Stock Exchange.

Sany Heavy would join rival XCMG Construction Machinery Co Ltd (000425.SZ) and about 12 other companies that have announced plans to raise about $11.7 billion in September alone from share sales in Hong Kong, the world's biggest market for IPOs for two years running.

The surge in offerings might indicate renewed confidence among companies and their bankers to list in Asia, after issuers including China Everbright Bank Co Ltd (601818.SS) delayed offerings in recent weeks because of volatility in global markets.

Shenzhen-listed XCMG obtained CSRC approval earlier this week for its potential $2 billion Hong Kong listing.

XCMG will issue about 593 million shares in Hong Kong, including an overallotment option of about 77.35 million shares.

CICC, Credit Suisse Group AG (CSGN.VX), HSBC Holdings Plc (0005.HK) (HSBA.L), Macquarie Group Ltd (MQG.AX), Morgan Stanley (MS.N), and BNP Paribas SA (BNPP.PA) were joint bookrunners for the XCMG deal, according to IFR, a Thomson Reuters publication.

Sany Heavy aimed to seek approval from the Hong Kong stock exchange for its offering on September 1, IFR reported on Wednesday.

Bank of America Merrill Lynch (BAC.N), Citigroup Inc (C.N) and Citic Securities Co Ltd (600030.SS) were handling the Sany Heavy offering, according to IFR.

Earlier this month, Sany Heavy, which was listed on the Shanghai Stock Exchange in 2003, reported a 107 percent rise in first-half net profit to 5.94 billion yuan ($929 million).

Sany Heavy's Shanghai-listed shares have gained 13 percent so far in 2011 and XCMG's Shenzhen-listed shares have fallen 21 percent. The benchmark Shanghai composite index .SSEC has fallen 9 percent during the same period.

($1 = 6.397 yuan)

(Reporting by Soo Ai Peng and Elzio Barreto; Editing by Jason Subler and Chris Lewis)

Source: http://feeds.reuters.com/~r/reuters/globalmarketsNews/~3/nxTSSil26wM/us-sanyheavy-ipo-idUSTRE77N1M320110824

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