China's Sany Heavy to raise $3.33 billion in Hong Kong offer

China's largest construction machinerymaker Sany Heavy Industry want to raise up to $3.33 billion in what could be Hong Kong's No. 2 stock offering this year.

Sany Heavy's offering comes on the heels of a slew of deal that hit Hong Kong's equity market last week after nearly two straight months of drought in share sales as investors shunned turbulent global markets.
The company, run by China's richest man, is offering 1.34 billion shares for HK$16.13-HK$19.38 each, putting the total offer value at up to HK$25.97 billion ($3.33 billion); According to a term sheet seen by Reuters on Monday.
Sany's CEO and founder Liang Wengen is listed China's richest man by Forbes, with an estimated wealth of $9.3 billion.
Offerings from Citic Securities and Sany Heavy could also open the way for other large deals in coming months.
Sinohydro, the builder of the Three Gorges Dam, said on Monday it would launch a $2.7 billion initial public offering this week confirming a Reuters report last week.
Sany is offering a 16.6 percent discount to its A share reference point, more than the 13.3 percent discount offered by Citic, given the bigger size of the fund raising.
China's share of global sales of construction machinery has grown to 40 percent in 2010 from just 5 percent in 2005, driven by a 15 percent compounded annual growth in China's GDP between 2000 and 2010.
Sany plans to use nearly half of the proceeds to build new plants to expand capacity for excavators, crawlers and cranes.
Sany Heavy, which has a market value of about $18 billion, plans to price the offer around September 26 and the shares are set to start trading in Hong Kong on or around October 3, the term sheet showed.