China Machinery Engineering sold 718 million shares at US$0.70 to raise US$500 million in an initial public offering in Hong Kong, Bloomberg reported, quoting two anonymous sources. A prospectus published December 10 said the state-owned contractor was marketing its shares at US$0.53-70. Its shares will begin trading in Hong Kong on December 21. This most recent fundraising will take Hong Kong past Malaysia as Asia’s third largest destination for IPOs this year, behind China and Japan. China Machinery has projects in Nigeria, Serbia and Ivory Coast and continues to look for investment opportunities overseas, seeking closer ties with developing countries and greater access to raw materials. China Machinery posted US$159 million profits in the first six months of 2012.