Tianhe Chemicals Group Ltd. and its shareholders are seeking as much as $818 million in Hong Kong’s third-biggest initial public offering this year.
The company, based in Jinzhou city in northeastern China, and shareholders are selling about 2.8 billion shares at HK$1.75 to HK$2.25 apiece, according to a term sheet obtained by Bloomberg News today. New shares account for 72.5 percent of the offering, the terms show.
Companies and their shareholders have raised $6.8 billion in Hong Kong IPOs this year, up 48 percent from the same period of 2013, according to data compiled by Bloomberg. That excludes last month’s $1.2 billion share sale by China CNR Corp., a train maker already listed in Shanghai.
Tianhe Chemicals plans to start trading on or about June 20, the terms show. Bank of America Corp., Morgan Stanley and UBS AG are joint sponsors on the IPO.
The company’s main products are lubricant additives and specialty fluorochemicals, according to its website. It supplies Chinese refiners including PetroChina Co. and China Petroleum & Chemical Corp., the website shows.