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China Machinery Engineering Corp., the state-owned contractor with projects in Iraq, Namibia and Gabon, may raise as much as $500 million in an initial public offering in Hong Kong this year, said a person with knowledge of the matter.
The unit of China National Machinery Industry Corp. (CNMICZ), based in Beijing, hired BOC International Holdings Ltd. to manage the share sale, said the person, who declined to be identified because the information is private.
The contractor, founded in 1978, is seeking to expand overseas as China strengthens ties with developing nations and secures access to raw materials in Africa. China Machinery Engineering’s business network already covers more than 120 countries and regions, according to the company’s website.
A Beijing-based spokeswoman for China National Machinery, who declined to be named, acknowledged the plan to sell shares in Hong Kong without providing further details.
China Machinery Engineering signed a $1.2 billion accord with Iraq in December to build a 1,260-megawatt power station north of Baghdad, a spokesman for the Iraqi Electricity Ministry said on Dec. 15.
Companies have raised $926 million by selling new shares in Hong Kong this year, compared with $470 million for the same period last year, according to data compiled by Bloomberg.
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