China Railway Group, the nation's largest construction company, and Xiashun Holdings, the largest maker of aluminium foil in the country, secured approval in principle from regulators yesterday to sell shares in Hong Kong to raise a combined US$2.4 billion, market sources said.
China Railway planned to raise as much as US$2 billion by selling H shares while Xiashun was aiming to raise a maximum of US$400 million, the sources said.
The ample market liquidity and investors' strong interest in new offerings prompted Xiashun to double its offering from the initially planned US$200 million, one source said.
Both deals are being arranged by UBS while China Railway has also appointed ABN Amro, BOC International and JP Morgan to help its share sale.
Pre-marketing for China Railway will start on Monday and that for Xiashun on Wednesday.
'Xiashun will kick off the international offering in the week of November 19 and the public offering in the last week [of November],' the source said.
Xiamen-based Xiashun is an aluminium foil provider for beverage companies including China Mengniu Dairy and Inner Mongolia Yili Industrial Group.
