Zhejiang Sanhua seeks US$1 billion in Hong Kong listing as Chinese firms rush to city

Chinese heating systems supplier Zhejiang Sanhua Intelligent Controls aims to raise up to HK$8.12 billion (US$1.03 billion) in a Hong Kong listing, joining a wave of mainland-traded companies that are tapping the city’s red-hot initial public offering (IPO) market.

The Shenzhen-listed firm plans to offer 360.3 million shares at HK$21.21 to HK$22.53 each, according to a filing to the Hong Kong stock exchange on Friday. The company will allocate 7 per cent of the base offering to Hong Kong investors and 93 per cent to global investors.

It may boost the offer size by up to 116.2 million shares to accommodate excess demand, according to the prospectus. This could swell the final fundraising to as much as HK$10.7 billion at the top end of the price range.

The stock is expected to start trading on June 23 under the 2050 code. At HK$22.53, Sanhua would be pricing its Hong Kong shares at an 18.5 per cent discount to its onshore shares. The stock fell 2.4 per cent to 25.26 yuan in Shenzhen on Friday, trimming this year’s gain to around 7.4 per cent.