China Machinery Engineering Corp. (1829), a state-controlled contractor with projects in countries including Nigeria, Serbia and Ivory Coast, surged as much as 19 percent on its Hong Kong debut after a HK$3.9 billion ($500 million) share sale.
The company rose to HK$6.27 as of 11:15 a.m., 16 percent more than its offer price of HK$5.40. The stock earlier climbed to as high as HK$6.40. Hong Kong’s benchmark Hang Seng Index dropped 0.8 percent.
The initial share sale was the third-biggest in Hong Kong in the past 12 months, behind offerings by People’s Insurance Co. Group of China Ltd. and Sunshine Oilsands Ltd., according to data compiled by Bloomberg. China Machinery, which said it will use most of the proceeds to finance overseas projects, is expanding abroad as the country seeks closer ties with developing nations and greater access to raw materials.
China Machinery sold 718 million shares in the offering, including $50 million investments from PICC and CSR Corp.
The Beijing-based unit of China National Machinery Industry Corp. offers engineering services and sells equipment and machinery in more than 150 countries and regions, primarily in Asia, Europe and Africa, according to its prospectus.
To contact the reporter on this story: Jasmine Wang in Hong Kong at Jwang513@bloomberg.net
To contact the editor responsible for this story: Neil Denslow at email@example.com