International Mining Machinery IMM, a Chinese coal mining equipment producer, started bookbuilding yesterday to raise up to HK$3.32 billion $427 million in an initial public offering IPO in Hong Kong.
The company is offering 520 million primary shares, or 40% of the enlarged share capital, in a price range of HK$4.88 to HK$6.38 per share, which will allow it to raise between HK$2.54 billion and HK$3.32 billion.
The price range represents a price-to-earnings ratio of between 18 and 23.5 times projected earnings for 2010. By contrast, the Hong Kong-listed shares in Sany Heavy Equipment -- IMM's key domestic competitor -- are trading at 30 times.
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