Sinotruck drums up interest in IPO

Sinotruck, China's third-largest heavy-truck manufacturer, announced that it will begin marketing its Hong Kong IPO, which is planned for November 19, the Financial Times reported. The firm's listing is expected to be worth US$1.16 billion, with 702 million shares to be sold at HK$10-12 (US$1.30-1.50). The firm is selling 32% of its enlarged share capital. Eight investors, including Hong Kong billionaire Li Ka-Shing, Singapore's state investment firm GIC, Bank of China and China Life have each committed to buying US$25 million. The Shandong-based truck maker had a market share of 18.5% in 2005, and has an annual manufacturing capacity of 70,000 trucks and 100,000 engines. It will use the funds it raises to boost its manufacturing capacity by more than half by 2010. Sinotruck has a truck-making joint venture with Volvo, the world's second-largest truck manufacturer.