Feb. 19, Bloomberg claimed that Oil-Rig Maker struggling for a big sum of money in IPO:
Honghua Group Ltd., the world's second-largest maker of land oil rigs, may raise as much as HK$3.75 billion ($481 million) in a Hong Kong initial public offering, said two people familiar with the sale.
Chengdu, southwestern China-based Honghua is offering about 833.4 million new shares at HK$3.16 to HK$4.50 each, said the people who declined to be identified because the information is not public yet. The sale of the 25 percent stake values the company at as much as $1.9 billion, or more than 17 times its estimated profit this year, they added.
About 60 companies pulled or delayed IPOs worldwide as stocks slid this year amid mounting financial industry losses linked to U.S. mortgages to people with poor credit. At least 10 of the 90 equity indexes tracked by Bloomberg fell more than 15 percent this year, according to data compiled by Bloomberg.
New Media Group Holdings Ltd.'s HK$102 million offering is the only first-time public stock sale that was completed in Hong Kong this year, the slowest start in the city's IPO market in eight years, the data shows.
``The liquidity crunch is severe and no doubt investors prefer cash to risky assets now,'' said Winson Fong, who manages about $600 million of China stocks for SG Asset Management in Hong Kong.
Honghua is the first company to start taking orders for a Hong Kong IPO after the Chinese New Year on Feb. 7. It and China Railway Construction Corp. could help revive the city's stock fundraising scene, Fong said.
Right Industries
``Both are in the right sectors, with minimal policy risks,'' he added. ``Global oil exploration investments and domestic Chinese railway investments are the least affected areas under the current environment.''
China Railway Construction is expected to set price ranges later this week for Shanghai and Hong Kong share sales that may collect as much as $5.6 billion, said two people familiar with the sale.
Credit Suisse Group and Morgan Stanley are arranging the public offering of Honghua, which will be 5 percent owned by buyout funds managed by the Carlyle Group after the IPO, according to a draft share sale document.
Liu Gangqiang, Chengdu-based board secretary for Honghua, is traveling and couldn't be reached in his office. Godwin Chellam, a Credit Suisse spokesman in Hong Kong, and Nick Footitt, a Hong Kong-based Morgan Stanley spokesman, declined to comment.
Chengdu, southwestern China-based Honghua is offering about 833.4 million new shares at HK$3.16 to HK$4.50 each, said the people who declined to be identified because the information is not public yet. The sale of the 25 percent stake values the company at as much as $1.9 billion, or more than 17 times its estimated profit this year, they added.
About 60 companies pulled or delayed IPOs worldwide as stocks slid this year amid mounting financial industry losses linked to U.S. mortgages to people with poor credit. At least 10 of the 90 equity indexes tracked by Bloomberg fell more than 15 percent this year, according to data compiled by Bloomberg.
New Media Group Holdings Ltd.'s HK$102 million offering is the only first-time public stock sale that was completed in Hong Kong this year, the slowest start in the city's IPO market in eight years, the data shows.
``The liquidity crunch is severe and no doubt investors prefer cash to risky assets now,'' said Winson Fong, who manages about $600 million of China stocks for SG Asset Management in Hong Kong.
Honghua is the first company to start taking orders for a Hong Kong IPO after the Chinese New Year on Feb. 7. It and China Railway Construction Corp. could help revive the city's stock fundraising scene, Fong said.
Right Industries
``Both are in the right sectors, with minimal policy risks,'' he added. ``Global oil exploration investments and domestic Chinese railway investments are the least affected areas under the current environment.''
China Railway Construction is expected to set price ranges later this week for Shanghai and Hong Kong share sales that may collect as much as $5.6 billion, said two people familiar with the sale.
Credit Suisse Group and Morgan Stanley are arranging the public offering of Honghua, which will be 5 percent owned by buyout funds managed by the Carlyle Group after the IPO, according to a draft share sale document.
Liu Gangqiang, Chengdu-based board secretary for Honghua, is traveling and couldn't be reached in his office. Godwin Chellam, a Credit Suisse spokesman in Hong Kong, and Nick Footitt, a Hong Kong-based Morgan Stanley spokesman, declined to comment.
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