XCMG Said to Delay $1.5 Billion Hong Kong Offer on Stock Swings
Stock Chart for XCMG Construction Machinery Co Ltd (000425)
The Shenzhen-traded company decided not to proceed with a plan to meet potential investors early next week due to market volatility that affects demand for new stock, said the people, who declined to be identified because the information is private. XCMG, which had targeted a listing in the first week of October, hasn’t set a new timetable for the sale, they said.
XCMG shares fell 0.2 percent to 20.57 yuan in Shenzhen today. The company, which controls about half of China’s crane market, trades at 11 times estimated 2011 profit, while Shanghai-listed rival Sany Heavy Industry Co. is valued at 12.2 times earnings on that basis, according to data compiled by Bloomberg.
A person who answered the phone at XCMG’s head office in Xuzhou city, Jiangsu province, said he had no comment on the delay. BNP Paribas (BNP) SA, China International Capital Corp., Credit Suisse Group AG (CSGN) and Morgan Stanley (MS) are managing the offering.
XCMG said in a January 5 statement to the Shenzhen stock exchange that it planned to sell as much as a 20 percent stake in Hong Kong.
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