China Machinery Engineering’s IPO covered at launch

The state-owned engineering contractor seeks to raise up to $500 million, of which PICC and four other cornerstone investors will take a combined $165 million.
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One of CMEC's thermal power stations in Malaysia
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<div style="text-align: left;"> One of CMEC's thermal power stations in Malaysia </div>

China Machinery Engineering Corporation, a state-owned international engineering contractor, kicked off a four-day roadshow yesterday for an initial public offering that is targeting to raise between HK$2.94 billion and HK$3.88 billion $380 million to $500 million. The stock is scheduled to start trading in Hong Kong on December 21.

Because of the tough environment for new listings in Hong Kong this year, China Machinery launched its offering with solid demand visibility. The deal, including a 15% greenshoe, is already covered thanks to cornerstone investors and large anchor orders, a source said yesterday.

Five cornerstone investors are taking a total of $165 million worth...

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