Steel-pipe maker seeks $239 million ahead of HK listing

Chu Kong Pipe seeks capital to expand its production. Meanwhile, China Oil and Gas tapped the market for $80 million last night through a top-up placement at a 16.7% discount.

Undeterred by the weakening sentiment for global equities, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings kicked off an institutional roadshow yesterday for an initial public offering that seeks to raise between HK$1.35 billion and HK$1.85 billion ($174 million to $239 million).

The company, which is known as Chu Kong Pipe for short, makes steel pipes that are used primarily to make pipelines for long-distance transportation of oil and natural gas. The pipes can be used either above or below ground or underwater. This means that the company is exposed to the level of ...