Zhengzhou Coal launches Hong Kong IPO

Zhengzhou Coal Mining Machinery started the international bookbuilding yesterday for its initial public offering of between HK$2.3 billion and HK$2.7 billion $300 million to $350 million. The company is a leading maker of coal mining and excavating equipment and China’s biggest maker of hydraulic roof supports.

Zhengzhou Coal, which is already listed in Shanghai, started pre-marketing for a $400 million to $500 million Hong Kong IPO in mid-September, but went back to the Chinese regulators to ask for an increase of the maximum discount versus its A-share price to 15% from 10%. The request was later approved, giving the company more flexibility with regard to pricing.