XCMG Said to Drop Plans to Raise $1.1 Billion in Stock Offer

XCMG Construction Machinery Co., China’s biggest crane maker, scrapped plans to raise about $1.1 billion in a share sale in Hong Kong after some underwriters backed out of commitments to buy any unsold stock, three people with knowledge of the matter said.

Bankers on the deal may meet today to try to restructure the offering, said one of the people, who declined to be identified as discussions are private. XCMG pulled the sale after some underwriters backed out of an agreement to purchase any stock the company failed to sell, a commitment known as hard underwriting, the people said.