HONG KONG: Sany Heavy Industry , a Chinese maker of construction machinery, will seek approval for a stock offering in Hong Kong worth up to $3.5 billion on Aug 25, a source with direct knowledge of the plans told Reuters on Wednesday.
Bank of America Merrill Lynch , Citigroup and Citic Securities are handling the offering, said the source, who couldn't be named because the details were not yet public.
Sany Heavy would join at least 13 other companies that have unveiled plans to raise about $11.7 billion in September alone from share sales in Hong Kong, the world's biggest market for IPOs for two years running.
The surge in offerings might indicate renewed confidence by companies and their bankers in appetite for listings in Asia, after issuers including China Everbright Bank delayed offerings in recent weeks because of volatility in global markets.
"Last year some people questioned whether there would be demand because of all the mega-deals and look what happened," said the head of equity capital markets at a top stock underwriter in Hong Kong. "I'm not concerned about demand for all the offerings coming up. Asian markets can react very quickly once confidence returns."
Copyright Reuters, 2011
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