China’s biggest machinery manufacturer Sany says that it will use its upcoming $3.3 billion IPO on the Hong Kong stock exchange to raise money to make overseas acquisitions.
Ahead of its 3 October launch, the Chinese company revealed that it will use the money to fund its global expansion plans and is considering a range of partnerships and potential acquisitions in oversees territories.
Sany has set itself the goal of raising 50% of its revenue from exports within the decade and has consequently strengthened its global footprint in the past 18 months. It opened an industrial park in Germany earlier this year and has busy refining its dealer network in the US ahead of opening its first plant in the country by the end of the year.
Tang Xiuguo, president of Sany Group, said that the Middle East is among a group of countries including India, Brazil and across Africa where it is looking to grow customers and production.
“We have some opportunities and we are in talks on some businesses, including mergers and acquisitions,” he told local media, adding that Sany is looking for “some specialised enterprises, including some family businesses, which have very good professional skills and a certain group of clients.”
The IPO will raise its market capitalisation to $21 billion placing it closer to the world’s fifth largest publically listed manufacturer Komatsu (market capitalisation $22 billion) in size.
The top five construction companies (in terms of market capitalisation)
1. Caterpillar $54 billion
2. Doosan Infracore $29 billion
3. Hitachi $27 billion
4. Volvo $23 billion
5. Komatsu $22 billion
