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Hebei Construction sets the foundation for Xiong’an growth
Posted on Tuesday, 05 December 2017 10:29
Hebei Construction wants to raise as much as HKD 2.32 billion (USD 296.84 million) in an initial public offering that Zephyr, the M&A database published by Bureau van Dijk, shows is one of the largest in Hong Kong this year.
China’s second-largest non-state-owned contractor has opened its books for a sale of 433.30 million shares at between HKD 4.46 and HKD 5.36 apiece with a view to begin trading on the main board on 15th December.
The South China Morning Post (SCMP) was quick to note the mainland-based megacity developer would be the first company focused on the Xiong’an special economic zone to list on the bourse.
Home to over 100.00 million people and contributing over one-tenth of China’s gross domestic product in 2016, the Beijing-Tianjin-Hebei province region is billed as one of the key engines of the country’s economic growth.
Xiong’an spans the three counties of Xiongxian, Rongcheng and Anxin, and was established in April 2017 as part of the government’s measures to accelerate development of the Beijing-Tianjin-Hebei zone.
The decision is to relieve the non-capital functions of Beijing by creating a green, smart city with an efficient transportation network and the ability to attract companies to develop high-end new industries.
It is estimated that the accumulated investment in the fixed assets of Xiong’an will top CNY 400.00 billion in the next five years from 2017 to 2021.
Cited by the SCMP, president Shang Jinfeng said at a media briefing yesterday his company has already positioned itself in the area through three entities formed, separately, with the local county administrations of Rongcheng and Xiong.
Shang noted: “Once the central government rolls out the development, our joint ventures will give us the upper hand.
“We expect massive infrastructure construction projects in the initial development of the new Xiongan city, followed by building projects in the later stage.”
© Zephus Ltd