China Zhongwang plans 2009's largest IPO

China Zhongwang Holdings, Asia’s largest aluminum extrusion manufacturer by capacity, hopes to raise nearly US$1.6 billion in the world’s largest initial public offering thus far this year, the Wall Street Journal reported, citing people familiar with the matter. The company will sell 1.4 billion new shares in Hong Kong, or 25.9% of its enlarged share capital, at a range of US$0.88 to US$1.14. The company is expected to be a beneficiary of China’s US$585 billion stimulus plan, as further investments in infrastructure will lead to more demand for transport-related aluminum products. The last billion-dollar Hong Kong IPO was China South Locomotive & Rolling Stock’s US$1.6 billion offering in August. Total funds raised in Hong Kong IPOs this year amount to US$335.1 million, compared to US$4.24 billion raised in the same period last year, according to Thomson Reuters.