Zhong Wang Looks Set To Pull Off A US$1bn+ IPO

Chinese Aluminium giant China Zhong Wang has begun marketing for a Hong Kong offering to raise HK$12.32bn ($1.6bn) in a move which, if successful, would mark the biggest IPO since China South Locomotive raised US$1.6bn in August 2008. It will represent a major test of current demand for new listings, particularly in light of both the recent rally in equity markets and apparent signs of life in the IPO market. The company plans to sell 1.4bn shares (nearly 26% of its enlarged share capital), at HKD6.80-HKD8.80 each ahead of a May 8 trading debut. Established in 1989, Zhong Wang is one of the biggest aluminum and vinyl profile producers in China, boasting total assets of CNY8.9bn (US$1.43bn) and annual capacity of 500,000 metric tons of aluminum profile.

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