Chinese equipment maker Sany Heavy Industry intends to use the proceeds from an initial public offering (IPO) to fund an ambitious overseas expansion, South China Morning Post reports.
The company hopes to raise $1.5bn by listing on Hong Kong’s stock exchange. It’s already listed on Shanghai’s.
The plan was announced in February, and is a step in a diversified finance plan formulated back in 2022.
It will use the money to expand its sales network in Asia, South America and Africa – regions with high demand for infrastructure.
Sany Group vice-president Jiang Qingbin told the Post that the goal was to double overseas revenue from $7bn to $14bn by 2028.
Overseas sales are currently increasing by 12% a year, and make up about 65% of Sany’s total.
The importance of foreign market reflects a dampening of domestic demand in the wake of the Chinese property market crash. Sany’s domestic sales fell more than 3% in 2024 compared with 2023.
“After the IPO, we will continue to promote globalisation, but globalisation is not about building factories. It’s mainly about people – building localised marketing channels is probably the most important thing,” Jiang said.
Although the US-China trade war remains volatile – the two countries agreed to a dramatic lowering of tariffs today – Jiang said it was not a prime consideration because 70% of its foreign sales were in Asia-Pacific and Europe.
In addition, the company’s manufacturing supply chains have been configured to avoid inputs from US companies.
“Markets outside the US happen to be our focus, particularly the developing and emerging economies,” Jiang said.
“We see higher demand from those regions, and there’s a relatively high acceptance of Chinese brands.”
Sany is the sixth-largest maker of construction machinery in the world, after Caterpillar, Komatsu, John Deere, XCMG and Leibherr.
Sany is one of more than 100 companies that have applied for a listing in Hong Kong this year.
The company has production facilities in the US, Europe, India, Brazil and Germany, and sells to around 180 countries and regions as of the end of last year.
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