TWO of China's largest machine tool makers are gearing up for a public listing to raise funds for expansion.
Both companies will consider the mainland bourses as an option, said senior executives of the two state-owned companies yesterday on the sidelines of the China International Industry Fair in Shanghai. Both were quick to add that details have yet to be worked out.
Wuhan Heavy Duty Machine Tool Group Corp, which is based in Hubei Province, is planning for an initial public offering within two years, said Vice General Manager Larry Peng. Peng added that they will not give up control of the company with the stock sale.
The company plans to double exports to markets like South Korea and some developing countries to US$1 million next year, when total sales should grow 60 percent to 1.6 billion yuan (US$213 million).
Qu Bo, chairman of Qier Machine Tool Group, said his firm is also considering floating shares to fund expansion. The company, based in Heilongjiang Province, is expected to boost its 2008 sales to three billion yuan from an estimated two billion yuan this year.