China CNR Corporation is into its second week of pre-marketing for a $1 billion to $1.5 billion initial public offering of shares in Hong Kong.
The train manufacturer, already listed in Shanghai, is pitching a 1.82 billion primary share deal, comprising 15% of its enlarged share capital. There is the normal 15% greenshoe and 90%/10% split between institutional and retail investors, and formal roadshows are provisionally scheduled to begin towards the end of the week.
CICC, Macquarie and UBS are acting as joint-bookrunners on the deal and have plenty of sectoral experience since CICC and Macquarie also led the dual Shanghai and Hong Kong IPO for China CNR's main competitor, CSR Corporation, in August 2008.
China CNR IPO is being pitched at 8.76 to 13 times projected 2014 earnings, based on Bloomberg' s consensus forecast data. In Shanghai, the group' s shares currently trade on a forward P/E ratio of 9.71 times, while CSR Corp' s trade slightly higher at 11.01 times, according to Bloomberg.
