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BIZCHINA / Center |
Sinotruk may raise HK$9bBy Bei Hu and Irene Shen (China Daily)
Updated: 2007-11-13 06:47 Sinotruk (Hong Kong) Ltd, China's largest maker of heavy trucks, may raise as much as HK$9 billion in a Hong Kong initial public offering, said sources. Sinotruk will offer 702 million new shares at HK$10 to HK$12.88 each, they said, declining to be identified before an official statement. The sale of a 32 percent stake values the Jinan, Shandong Province-based company at as much as $3.6 billion or 18.8 times next year's profit as estimated by the banks handling the sale, they said. The truckmaker is raising money to expand production capacity in the country, where investment in fixed assets, such as factories, bridges and real estate, jumped 26 percent in the first nine months of this year. China relies on road transport to carry about 75 percent of its cargo, according to one of the banks arranging Sinotruk's share sale. "China's booming investment in fixed assets and highways has boosted demand for heavy trucks," said Li Chunbo, an analyst at CITIC Securities Co in Beijing. The predecessor to Sinotruk's parent, China Heavy Truck Group Co, built the country's first heavy-duty truck in 1960. Taken together, Sinotruk and its parent were the largest maker of heavy trucks in China in the first nine months, with a 20.8 percent market share. Bloomberg News (China Daily 11/13/2007 page13) |
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