The hottest financing quenches thirst XCMG and san

2022-10-15
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Financing quenches thirst XCMG and sany go to Hong Kong to "fight for help"

financing quenches thirst XCMG and sany go to Hong Kong to "fight for help"

China Construction machinery information

Guide: after several twists and turns, XCMG Construction Machinery Co., Ltd. will eventually go public in Hong Kong. It is reported that XCMG machinery hopes to be listed on September 1 or September 8, and plans to raise $1.5 billion to $2 billion. On August 18, a senior person of XCMG confirmed to this newspaper that the company went to Hong Kong

after several twists and turns, XCMG Construction Machinery Co., Ltd. will eventually go public in Hong Kong. It is reported that XCMG machinery hopes to be listed on September 1 or September 8, and plans to raise $1.5 billion to $2 billion

on August 18, a senior person of XCMG machinery confirmed to this newspaper the company's listing in Hong Kong. "The listing in Hong Kong is progressing as planned, and we hope to complete it in the third quarter." The person said. But he declined to give more details

XCMG originally planned to complete its listing in Hong Kong in the middle of this year. "The originally planned time was June and July." An official of Xuzhou municipal government said

it is worth noting that XCMG's listing plan coincides with the plan of Sany Heavy Industry, another domestic construction machinery giant, to visit Hong Kong. The latter is scheduled to go public on August 25 or September 1

insiders said that XCMG machinery was so eager to achieve listing because it hoped to raise funds through listing in Hong Kong to alleviate the deteriorating cash flow of the company. Through the funds raised, XCMG machinery will increase the pace of overseas expansion

twists and turns

senior people of XCMG machinery did not deny the specific listing date reported by the outside world

in October 2009, Wang Min, chairman of XCMG group, revealed that XCMG would achieve overseas listing as soon as three years. However, it was not determined at that time whether to go to Hong Kong or the United States for listing. After that, XCMG group has been busy with the overall listing for more than a year. "The group hopes to promote the reform of XCMG's internal system through overall listing. At that time, overseas listing was only a preliminary idea." Sources close to XCMG cold-rolled ribbed steel bars GB 13788 (2) 000 revealed

At the end of 2010, Wang Min said in an interview that XCMG would go public in Hong Kong in the coming year. At this time, XCMG's overall listing plan is nearing the end

in February this year, XCMG completed the asset injection of Xuzhou XCMG Road Construction Machinery Co., Ltd., thus basically realizing the overall listing. This also paved the way for XCMG machinery to be listed overseas

at the beginning of this year, XCMG machinery officially launched the listing plan in Hong Kong. "The original plan was to complete the listing before the third quarter." People close to XCMG machinery said

at the end of December 2010, Zoomlion, another giant in the domestic construction machinery industry, successfully listed in Hong Kong and raised HK $13billion. At that time, Zoomlion completed the largest financing of the global construction machinery industry in recent years. According to the plan of Zoomlion, about 38% of the fund-raising will be used for the expansion and operation of overseas business. After that, Zoomlion accelerated the pace of overseas expansion, and its net profit in the first quarter also increased by 175.46% year-on-year. "After seeing the rapid growth of Zoomlion after its listing in Hong Kong, as China's largest manufacturer of construction machinery industry, XCMG also wants to grow rapidly, but the first problem to be solved is money." A senior official of China Construction Machinery Industry Association, who declined to be named, said

for this reason, XCMG, with the support of Xuzhou municipal government, plans to advance the schedule of listing in Hong Kong. "So advance the schedule to June and July." The above Xuzhou municipal government official said

XCMG machinery officially launched the H-share listing plan at the beginning of this year when the bone around the implant will not be stressed. According to the procedures of the stock exchange, it takes months for companies that meet the listing standards of the stock exchange to hire accountants to audit and appoint sponsors to complete the listing documents. "But it usually takes months. The effective time of relevant financial audit is 6 months. It needs to be completed within 6 months from the completion of accounting audit to listing." People familiar with the Listing Rules of the stock exchange said

if the requirements of the stock exchange are strictly followed, XCMG machinery is still expected to complete the listing plan in June and July

variables

the downturn in Hong Kong stock market and the continued turbulence in the international economic situation are another factor that forced XCMG to shelve its plan in advance

in the first half of this year, affected by the Japanese earthquake and the European debt crisis, institutional investors were not enthusiastic about subscribing for IPOs, and many enterprises that only wanted to IPO in Hong Kong were forced to give up halfway. For example, Hailong holdings, industrial international and Jingneng clean energy; Some successful IPO companies are facing the embarrassing situation of insufficient subscription and breaking on the first day. "In the first half of this year, the Hong Kong market was indeed relatively bleak, and enterprises that came to Hong Kong for IPO could not achieve full subscription. The second half of this year has improved since August. Generally speaking, the listing in the second half of this year will be better than that in the first half." A Hong Kong Securities businessman said

however, there are still variables in XCMG's IPO in Hong Kong. Sany Heavy Industry, another construction machinery giant, plans to go public on August 25 or September 1. Judging from the timetable, the Hong Kong market may even have two giants listed at the same time on the same day

but this presents a problem for the underwriters. Although the Hong Kong market has gradually improved since the second half of the year, under the turbulent market conditions, can we complete two large-scale IPO cases from the same industry at the same time

the underwriters of Sany Heavy Industry are Bank of America Merrill Lynch, Citigroup and CITIC Securities [12.01 -0.58% stock bar Research Report] International; The underwriters of XCMG machinery are composed of BNP Paribas, CICC, Credit Suisse, HSBC, Macquarie and Morgan Stanley

no celebrity of CICC said that it was a coincidence that the listing time of the two industry giants was crowded together. "In fact, as an enterprise, it doesn't want to crash with competitors, which is not good for anyone." The person said

in fact, Sany Heavy Industry originally planned to land on the Hong Kong Stock Exchange in June. At the beginning of this year, Sany Heavy Industry said publicly that listing in Hong Kong would become the focus of the company's work in 2011. It was once reported that Sany Heavy Industry Association heard the case in Hong Kong at the end of May and planned to raise US $3billion for an IPO in June

later, due to the impact of the "bribery door" and the downturn in the Hong Kong market, Sany's listing plan was adjusted to the second half of the year. The above-mentioned Hong Kong securities business people said that at the same time, the situation of two giants in the same industry listing together was not ideal, which would make it difficult for investors to make a choice. "The best way is to stagger the IPO time of the two companies, otherwise it will be bad for everyone." The person said

before this, similar cases have appeared in the field of new energy. At the end of last year, Huaneng new energy and Datang new energy, both central enterprises with wind power as their main business, were listed around December 16 and 17. Finally, Datang new energy was listed as scheduled, priced at HK $2.33, but fell below the issue price on the first day of the market, down more than 6%; Huaneng new energy, another giant, had to postpone its listing plan due to insufficient subscription

it is still unclear whether Sany or XCMG will adjust the listing schedule to avoid direct competition. Executives at both companies did not comment

lack of money

according to the plan of Sany Heavy Industry and XCMG machinery, the former plans to sell 15% of the expanded share capital of the company, with a maximum financing amount of $3billion; The latter plans to raise $1.5 billion to $2.0 billion by selling no more than 20% of the expanded share capital of the company and 15% of the over allotment rights. This newspaper learned that XCMG's H-share IPO price is likely to be in Between HK $5

in fact, for the two companies, they are now "short of money"

in the first quarter of this year, the growth rate of the construction machinery industry reached 50%, but the growth rate fell sharply from April, although the consumption of engineering plastics and composite materials was not clear. Qi Jun, President of China Construction Machinery Industry Association, said that the average growth rate this year is expected to be about 17%. "The construction machinery industry is unlikely to see a high growth rate and will enter a stable growth stage." Qi Jun said. In his view, enterprises in the industry should vigorously explore foreign markets if they want to ensure high-speed growth

in 2010, XCMG formulated the 12th Five Year Plan, striving to achieve an operating revenue of 100billion yuan in 2012, ranking among the top five global construction machinery manufacturers; In 2015, it achieved an operating revenue of 300 billion yuan, ranking among the top three global construction machinery manufacturers. This requires XCMG to ensure an average annual growth rate of more than 35% in the next five years. However, the growth rate of the domestic construction machinery industry has fallen, and XCMG can only place its hopes on the overseas market if it wants to achieve the above goals

senior people of XCMG machinery told this newspaper that the overseas acquisitions so far are only a microcosm of XCMG's overseas strategy, and more overseas acquisitions of XCMG will be seen in the future

in addition, XCMG machinery will also accelerate the pace of building factories overseas. Wang Min, chairman of XCMG group, said that XCMG would increase 20 overseas dealers and 5 overseas spare parts centers in the next few years

continuous overseas investment also led to the continuous deterioration of XCMG's cash flow. XCMG's financial report for the first half of 2011 shows that the net cash flow generated by XCMG's operating activities is -915 million yuan, and the net cash flow generated by investment activities is -1.16 billion yuan

Sany's cash flow situation is not ideal. In the first half of the year, when Sany achieved the highest operating income of 30billion yuan in history, the net cash flow from operating activities was only 251million yuan, which was 2.504 billion yuan in the same period of last year, only 10% of the same period of last year

if the H-share IPO can be successfully realized, the funds raised can not only greatly alleviate the cash flow tension of the two companies, but also accelerate the pace of overseas expansion for XCMG machinery. It is understood that the funds raised by XCMG's IPO in Hong Kong will be mainly used for capacity expansion and overseas expansion

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