Sany braves HK market with $3.3b IPO

Sany Heavy Industry and Citic Securities are slated to raise a combined US$5.2 billion on the Hong Kong Stock Exchange, facing a market in which a record US$14 billion of equity offerings have been cancelled or delayed as companies struggle with the volatile environment, Bloomberg reported. Sany Heavy will raise US$3.3 billion for acquisitions overseas and to build factories in the US and Germany, said Tang Xiuguo, president of Sany Group. For its part, Citic Securities plans to finance US$1.9 billion after attracting early investors, including Temasek Holdings and the Kuwait Investment Authority. “Sany is the biggest machinery maker in China and Citic Securities is the biggest brokerage, so both are providing a compelling investment case. Other companies may have to price shares cheap or struggle to get things done in such a market environment,” said fund manager Binay Chandgothia of Principal Global Investors.