Two Chinese companies test Hong Kong IPO appetite after summer lull

Bankers started pre-marketing yesterday for Zhengzhou Coal Mining Machinery, which is aiming to raise about $400 million to $500 million from its initial public offering in Hong Kong, a source said.

Separately, Fosun Pharmaceutical is expected to start pre-marketing sometime next week for its IPO of about $500 million to $600 million, according to other sources.

The two companies aim to list their shares in Hong Kong next month and, if successful, may help revive Hong Kong’s IPO market, which has been quiet since the summer. They will also be the first IPOs of size since Inner Mongolia’s Yitai Coal raised HK$7 billion $902 million...