China’s Sany Heavy Industry traded flat in its Hong Kong trading debut

China’s Sany Heavy Industry traded flat in its Hong Kong trading debut on Tuesday after raising 12.36 billion Hong Kong dollars ($1.59 billion) in one of the city’s biggest listings this year.

The stock was valued at HK$21.30 piece by piece. The announcement adds to the fundraising in the Hong Kong capital following recent significant offerings such as Zijin Gold International $3.2 billion initial public offering on September 30.

Sany shares listed in Shanghai has gained over 35% so far this year. The company, founded in 1994, is among the largest producers in the world of construction machinery, production of excavators, cranes, road construction machinery and piles.

China International Capital Corp. acts as sole sponsor and general coordinator for the initial public offering. Other banks in the deal include BOC International, Industrial and Commercial Bank of China, Agricultural Bank of China and China Merchants Bank.

Major investors include Hillhouse, BlackRock, Temasek and Infore Capital. Sany said it plans to use the funds for overseas expansion, research and development, digital upgrades and sustainability efforts.

“Despite a strong international growth narrative and solid recent performance, the listing of Sany Heavy Industry (Hong Kong) is unlikely to unlock significantly higher valuation,” said Lenny Zephirin, analyst at The Zephirin Group.

He said investor sentiment toward China’s construction and heavy machinery sectors remained cautious, constrained by cyclical headwinds, overcapacity and limited visibility of domestic demand for infrastructure.

While the Hong Kong listing should improve the company’s liquidity and visibility, Zephirin added that a revaluation is unlikely without significant gains in capital efficiency or strategy execution.