BBMG to raise $700m in HK IPO
Updated: 2009-07-07 07:12
(HK Edition)
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HONG KONG: BBMG Corp, one of the top construction materials makers on the mainland, plans to raise about $700 million in a Hong Kong initial public offering, joining a queue of companies tapping ample liquidity and a strong appetite for new listings.
"It makes sense to see the listing candidates tap the market when it still has ample liquidity," said Patrick Yiu, a director at CASH Asset Management.
"BBMG is set to be a hot issue as it is not only a construction materials maker but also a property play, a sector in which activity has picked up significantly."
Many mainland developers posted strong growth in apartment sales during the first half, thanks to government support measures and hopes that the nation's economy will be among the first to recover.
BBMG plans to sell 933.33 million shares with an over allotment of up to 140 million shares at prices to be determined later. Three-quarters of the proceeds will be used to fund its expansion plans with the remainder to repay bank loans and for working capital, according to a term sheet released yesterday.
Macquarie Group is a joint bookrunner and joint lead manager of the issue. UBS was also involved in the deal, sources said last week. China Life is one of the main investors in BBMG, local media reported.
Meanwhile, mainland menswear designer Lilang is planning to raise about $100 million in an IPO in Hong Kong later this year, according to a report.
The company hired Merrill Lynch to manage the deal, which was scheduled to be launched in the fourth quarter, and a successful deal would value the company at $400 million, the newspaper said without identifying a source.
China Daily - Reuters
(HK Edition 07/07/2009 page4)