Nov. 25 (Bloomberg) -- Qinhuangdao Port Co., operator of China’s biggest coal port, is seeking as much as $717 million in a Hong Kong initial public offering as first-time share sales in the city rebound from a nine-year low.
The company, based in Hebei province, and existing shareholders are offering 829.9 million shares at HK$5.25 to HK$6.70 apiece, according to a terms for the deal obtained by Bloomberg News. The stock accounts for about 16.5 percent of Qinhuangdao’s enlarged capital.
Qinhuangdao and China Cinda Asset Management Co. will help revive the IPO market in Hong Kong, where Chinese companies have been seeking to raise funds amid a 14-month freeze on domestic offerings. Hong Kong IPOs have raised $11.6 billion this year, up from $8 billion for the whole of 2012, according to data compiled by Bloomberg.
Cornerstone investors including Zhongrong International Trust and China Datang Overseas plan to buy $240 million of stock in Qinhuangdao’s offering, the terms show. The company plans to start trading on Dec. 12.
Cinda, a state-owned asset manager, is seeking as much as $2.5 billion from a sale of 5.3 billion shares at HK$3 to HK$3.58 each, according to a term sheet obtained by Bloomberg News. Cornerstone investors will buy $1.1 billion worth of shares, accounting for 48% of the offering at the midpoint of the price range, the terms show.
Och-Ziff Capital Management Group LLC will buy $200 million of Cinda stock. Other cornerstone investors in the Cinda IPO include Norges Bank, Oaktree Capital Group LLC and Farallon Capital Management LLC, the terms show.
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