Honghua Group, the world's second largest and China's largest onshore oil drilling rig maker by revenue, has made a successful debut on the Main Board of The Stock Exchange of Hong Kong Limited, raising HK$3.19 billion (approximately US$409 million) of new capital for the company.
Honghua is the first major Initial Public Offering to price and conclude successfully in Hong Kong this year. The strong subscription of the company's shares helped to stabilize confidence in the local equity markets. Honghua offered a total of 833,000,000 primary shares to international and Hong Kong retail investors. Once the over-allotment option is exercised, the total issuance will increase to 957,950,000 shares.
The successful IPO will help the company establish a stronger global platform. The offering proceeds will support Honghua's expansion of production capacity through entry into offshore drilling rig manufacturing, construction of new manufacturing base and potential acquisitions.
Mr. Mi Zhang, Honghua's Chairman, and his management team will remain the controlling shareholders of the company, while Nabors Industries, China National Offshore Oil Corporation, and Carlyle will stay as committed strategic investors.
Honghua is a portfolio company of Carlyle Asia Growth Partners III under the Carlyle Asia Growth Capital Group that manages three funds with a total asset of US$1 billion.
Most Popular Articles
From the Career Center
Jobs that may interest you