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CORRECTED - China's CITIC Heavy launches IPO in Shanghai
June 16, 2012 / 2:21 AM / 5 years ago

CORRECTED - China's CITIC Heavy launches IPO in Shanghai

(Issue road show starts on June 19 not 29 - penultimate para)

SHANGHAI, June 16 (Reuters) - CITIC Heavy Industries Co, China’s fourth-biggest maker of heavy machinery, will launch a 4.13 billion yuan ($648.85 million) initial public offering on the Shanghai Stock Exchange in June, according to a prospectus published late on Friday on the exchange’s website.

If successful, it will be the second-largest A-share IPO in Shanghai this year, behind a 5 billion yuan offering by China Communications Construction in February.

CITIC Heavy had originally planned to raise 6 billion yuan but decided to slash its fundraising target by 31 percent after taking into account current market conditions. It won approval for the IPO at the end of March.

The company, which competes with bigger rivals, including China First Heavy Industries and Taiyuan Heavy Machinery Group Co, aims to sell up to 685 million shares, or 25 percent of its equity, to fund future expansion plans.

CITIC Heavy has appointed Zhong De Securities Co, a Chinese joint venture of Deutsche Bank and CITIC Securities , China’s biggest listed brokerage, as lead underwriters for the IPO.

The issue’s road show is scheduled to begin on June 19 and price by June 27. It will trade under the ticker 601308.SS. ($1 = 6.3651 yuan) (Reporting by Pete Sweeney and John Ruwitch; Editing by Ron Popeski)

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