Sinopec Engineering Gains in Debut of Top IPO: Hong Kong Mover

Sinopec Engineering Group Co. (2386), a unit of China’s biggest refiner, advanced in its debut in Hong Kong trading after raising $1.8 billion in the city’s largest initial public offering this year.

The shares rose as much as 2.1 percent to HK$10.72 and traded at HK$10.54 as of 9:39 a.m. local time. The Beijing-based company, which builds refineries and provides oilfield services, sold 1.33 billion shares at HK$10.50 each in the sale that closed May 16. The benchmark Hang Seng Index fell 0.7 percent.

The sale brings the value of Hong Kong IPOs in May to $2.9 billion, the highest monthly total since November, when People’s Insurance Company (Group) of China Ltd. raised $3.6 billion, according to data compiled by Bloomberg. The average first-day gain among 46 initial public offerings in Hong Kong over the past year is 14.7 percent.

Companies completed $1.1 billion of initial share sales in the city in the first quarter, the least since early 2009, data compiled by Bloomberg show.

Sinopec Engineering’s anchor investors include China Aerospace Investment Holdings Ltd., Aerospace Science & Technology Finance Co., China Export & Credit Insurance Corp., Zhongrong International Trust Co., Albertson Capital Ltd. and China CAMC Engineering Co.

To contact the reporter on this story: Benjamin Haas in Hong Kong at bhaas7@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

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