XCMG--XCMG Sets Issuance Record, Plans HK Listing

XCMG Construction Machinery (000425) plans to distribute 10 shares and 1.2 yuan in cash for every 10 shares owned by shareholders, setting a new record in revenue distribution plans, reports nbd.com.cn.

XCMG also plans to list on the Hong Kong Exchange with maximum H-share issuance of 20 percent of total equity. Accordingly, the company will issue not more than 258 million H-shares based on its current total equity of 1.03 billion shares.

The money will be raised to create domestic and foreign research systems, expand international business, upgrade components, create an international marketing and service network, and supplement operating cash flows.

In September, 2010, the company raised 4.9 billion yuan in private placement for research.

The company plans to boost its sales revenue after 2012 by 80 percent of its current base.

XCMG's booth at an expo in Beijing

According to Orient Securities, XCMG has grabbed over 50 percent share of the domestic hoisting machinery market for three years in a row, and its growth rate in 2010 was only 15 percent due to production limitations.

Source: capital Vue