Sinopec Engineering Group Co., a unit of China’s biggest refiner, and China Galaxy Securities Co. Plan to raise a total of as much as .6 Billion in Hong Kong’s two biggest initial public offerings this year, according to people familiar with the matters.
The Beijing-based unit of China Petrochemical Corp. plans to offer 1.33 Billion shares at HK$9.8 to HK$13.1 each, raising a potential HK$17.4 Billion ($2.24 billion), two of the people said. Galaxy Securities, a brokerage controlled by China’s sovereign wealth fund, may sell 1.57 Billion shares at HK$4.99 to HK$6.77 apiece, raising as much as HK$10.6 billion, according to two separate people. They asked not to be identified because the information is private.
The share sales may help Hong Kong IPOs recover after their value dropped to the lowest in four years in the first quarter. Companies raised $1.1 Billion from initial share sales in the city in the first three months, the least since early 2009, according to data compiled by Bloomberg.
Sinopec Engineering builds facilities and provides oilfield services, according to Sinopec Group’s website. The price range values the company at nine to 12 times estimated 2013 earnings, according to the two people with knowledge of the matter.
Wison Engineering Services Co. (2236), a Chinese provider of engineering and construction services for the petrochemical industry, raised $239 million from a Hong Kong IPO in December. The company has gained 37 percent from its offer price, trading at 10.1 times estimated 2013 profit, data compiled by Bloomberg show.
An external spokeswoman for Sinopec Engineering declined to comment on the offering.
Galaxy Valuation
Galaxy Securities’s price range values the company at 1.19 to 1.49 times estimated 2013 book value, according to the two people with knowledge of the matter. The valuation is lower than those of the biggest publicly traded brokerages from China, they said.
Cornerstone investors of the offer include insurer AIA Group Ltd. (1299) with an investment of $50 million and Khazanah Nasional Bhd, Malaysia’s sovereign wealth fund, with $100 million, the people said. Cornerstone investors typically agree to hold their stock for six months in return for guaranteed allocation in an IPO.
Founded in January 2007, Galaxy Securities is controlled by Central Huijin Investment Ltd., a unit of China Investment Corp., according to the brokerage’s website.
An external spokeswoman for Galaxy Securities declined to comment on the share offering.
The Beijing-based unit of China Petrochemical Corp. plans to offer 1.33 Billion shares at HK$9.8 to HK$13.1 each, raising a potential HK$17.4 Billion ($2.24 billion), two of the people said. Galaxy Securities, a brokerage controlled by China’s sovereign wealth fund, may sell 1.57 Billion shares at HK$4.99 to HK$6.77 apiece, raising as much as HK$10.6 billion, according to two separate people. They asked not to be identified because the information is private.
The share sales may help Hong Kong IPOs recover after their value dropped to the lowest in four years in the first quarter. Companies raised $1.1 Billion from initial share sales in the city in the first three months, the least since early 2009, according to data compiled by Bloomberg.
Sinopec Engineering builds facilities and provides oilfield services, according to Sinopec Group’s website. The price range values the company at nine to 12 times estimated 2013 earnings, according to the two people with knowledge of the matter.
Wison Engineering Services Co. (2236), a Chinese provider of engineering and construction services for the petrochemical industry, raised $239 million from a Hong Kong IPO in December. The company has gained 37 percent from its offer price, trading at 10.1 times estimated 2013 profit, data compiled by Bloomberg show.
An external spokeswoman for Sinopec Engineering declined to comment on the offering.
Galaxy Valuation
Galaxy Securities’s price range values the company at 1.19 to 1.49 times estimated 2013 book value, according to the two people with knowledge of the matter. The valuation is lower than those of the biggest publicly traded brokerages from China, they said.
Cornerstone investors of the offer include insurer AIA Group Ltd. (1299) with an investment of $50 million and Khazanah Nasional Bhd, Malaysia’s sovereign wealth fund, with $100 million, the people said. Cornerstone investors typically agree to hold their stock for six months in return for guaranteed allocation in an IPO.
Founded in January 2007, Galaxy Securities is controlled by Central Huijin Investment Ltd., a unit of China Investment Corp., according to the brokerage’s website.
An external spokeswoman for Galaxy Securities declined to comment on the share offering.