Two Chinese construction machinery companies are planning multi-billion-dollar Hong Kong initial public offerings, sibling publication The Asian Lawyer reported.

Sany Heavy Industry Co. Ltd., a maker of concrete-mixer trucks, cranes, excavators, steamrollers, container lifts, and other heavy equipment, received approval last week from the China Securities Regulatory Commission (CSRC) to float 1.54 billion shares worth around $3 billion on the Hong Kong Stock Exchange.

According to the prospectus, Sidley Austin is advising Sany Heavy, based in Changsha, Hunan Province, on Hong Kong and U.S. law. The Chicago-based firm, which declined to comment on the deal, also represented Sany Heavy previously on global aspects of its IPO on the Shanghai Stock Exchange in 2003. Hunan Qiyuan Law Firm, a 27-lawyer firm based in Changsha, is Chinese law counsel to Sany Heavy. It could not be reached for comment.

Counsel to the underwriters--Bank of America Merrill Lynch, Citigroup, and CITIC Securities--was not disclosed in the prospectus.
Sany Heavy says it will use the proceeds of a Hong Kong offering to increase its production capacity fivefold.
Its offering will be competing with that of rival company XCMG Construction Machinery Co. Ltd., which also received CSRC approval last week for a Hong Kong IPO. Best known for its hydraulic cranes, XCMG, headquartered in Xuzhou, Jiangsu Province, is seeking to raise around $2 billion.

According to the prospectus, Clifford Chance is advising XCMG on Hong Kong and U.S. law. The company has turned to Beijing’s Jingtian & Gongcheng for Chinese law advice. Clifford Chance declined to comment. Jingtian & Gongcheng did not respond to requests for comment by press time.

The legal advisors to the underwriters--China International Capital Corp., Credit Suisse, HSBC Holdings, Macquarie Group and Morgan Stanley & Co.--were not listed in the prospectus.
 

Source:typepad