Key Takeaways:
Sany Heavy is hoping its rapid globalization story can wow Hong Kong investors, with offshore sales now accounting for more than half of its total
The construction equipment maker's fate on the Hong Kong Stock Exchange could hinge on whether investors see it is a high-tech growth story, or a traditional economy company
High tech company or old economy stalwart? That's the big question hanging over Sany Heavy Industry Co. Ltd. (6031.HK; 600031.SH), as China's leading maker of heavy construction equipment gets set to make its trading debut on Tuesday for an IPO that looks likely to be the third largest in Hong Kong this year.
Sany's listing is set to raise about HK$12 billion ($1.54 billion), after the company announced on Friday it would sell about 580 million shares for between HK$20.30 and HK$21.30 apiece. That amount is the most raised by any company in one of Hong Kong's hottest IPO markets in years, behind only EV battery giant CATL (3750.HK; 300750.SZ), which raised $4.5 billion in May, and Zijin Gold International (2259.HK), which raised $3.2 billion last month.
Notably, the half-dozen Hong Kong IPOs to raise more than $1 billion this year, with the exception of Zijin Gold, have all been from companies that were already listed in China's domestic markets in Shenzhen and Shanghai, and were making second listings in Hong Kong to raise their global profiles. Sany fits that definition quite nicely and talks up its international ambitions quite a lot in its Hong Kong IPO prospectus. More on that shortly.
But first, we'll zero in on the question of valuation, which has taken an interesting turn for this group of dual-listed companies. In short, companies perceived as high-tech are being valued quite richly by Hong Kong investors compared to their ...
