Chinese Construction Machinery Giant Sany Heavy Plans Swiss Listing

Sany Heavy Industry Co., Ltd (600031:SH) announced its plan to list on the Swiss Stock Exchange on March 15 by issuing offshore Global Depository Receipts (GDRs).

This multinational heavy equipment manufacturing leader said that the move aims to promote its internationalization strategy, making full use of the capital market and improving corporate governance. 

The proceeds raised would be mainly used for its international business, with the European and American markets as the main breakthrough.

More details are still under discussion and awaiting approvals from authorities, according to Sany, which is based in Changsha in central China’s Hunan province.

If the deal gets the go-ahead, Sany will be the first Chinese company to issue GDRs abroad after amendment to rules of the Shanghai-London Stock Connect.

The Stock Connect is a cross-border investment channel between Shanghai Stock Exchange and London Stock Exchange, allowing eligible companies listed in their respective market to issue and trade depositary receipts (DRs) on each other’s exchange under local rules in the local time zone.

In December 2021, China’s securities regulator modified the scheme to expand the listing program to Switzerland, Germany and other European markets, aiming to help facilitate cross-border investment and promote the opening-up of China's capital markets.

Sany is one of China’s largest construction machinery makers with excavators being its core product. Its excavators have been the top seller domestically for 10 consecutive years since 2011 and garnered the highest global sales in 2020.

Other competitive market players include the world's largest construction-equipment manufacturer Caterpillar (CAT:NYSE), Japanese Komatsu (6301:Tokyo) and Xuzhou, Jiangsu-headquartered XCMG.

As of March 16, shares of Sany closed at CNY 17.17, up 4.06%, with a market capitalization of CNY 147.94 billion.