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Zoomlion rises in HK debut as construction increases profit

(Agencies)
Updated: 2010-12-23 13:43
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Changsha Zoomlion Heavy Industry Science & Technology Development Co rose on its Hong Kong trading debut on speculation China's economic growth will stoke demand for bulldozers, cranes and excavators, Bloomberg News reported Thursday.

The country's second-biggest maker of construction equipment raised HK$13 billion ($1.7 billion) selling shares at HK$14.98 apiece, which was near the bottom of its price range, the report said.

Zoomlion expects profit to jump at least 76 percent this year, according to its prospectus, as rising urbanization in the world's most populous nation boosts construction of roads, railways and apartments. China's growth has also spurred demand for new shares in Hong Kong, with companies raising a record HK$425 billion in initial public offerings in the city this year, including stock sold through the exercise of overallotment options, according to Bloomberg data.

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Zoomlion, which is already listed in Shenzhen, sold 869.6 million shares in its Hong Kong offering. It plans to use funds raised in the sale to build a factory in China and to develop new products, the report cited its prospectus as saying.

The company also plans to open a research and assembly center in Italian city Senago, the report added.