A company at the centre of the furore over investment banks’ China hiring practices is pushing ahead with its initial public offering in Hong Kong, in a deal that could raise up to $818m.
Tianhe Chemicals Group, a Chinese speciality chemicals maker, launched its offering yesterday. The company is selling 2.8bn shares, 73 per cent of which are new, to be priced between HK$1.75-HK$2.25 each. The privately owned company specialises in producing oil additives and speciality fluorochemicals used in areas including electronics, optics and surface treatments such as waterproofing fabric.
Initially it was expected to target a deal of at least $1bn, but sentiment towards Chinese stocks has been weak this year as investors fretted about the country’s slowing economic growth. But should demand be strong enough for bankers to exercise an overallotment option, Tianhe could raise as much as $940m.