25.09.2011

XCMG drops share sale

Chinese crane manufacturer XCMG has dropped plans to raise HK$8.58 billion ($1.1 billion) through a Hong Kong listing and share sale, after some of its underwriters pulled out of the deal.

The company and its bankers may still try and save the flotation but without the underwriters commitment to buy up any unsold shares, it is unlikely that it will manage to resuscitate the dealer this year. The share sale would have given those investing around 15 percent of the business - XCMG shares already trade in Shenzhen, China.

The failure follows hard on the heels of last week’s decision by Sany Heavy Industry to postpone its HK$25 billion ($3.2 billion) stock sale until 2012 following uncertainty in the equity markets. A statement from Sany said: “We aim to grasp an opportunity when the market turns relatively favourable”.