Tianhe Chemicals to list in London Stock Exchange

China’s largest additive manufacturer Tianhe Chemicals, based in Jinzhou City, Liaoning province, plans to list in the London Stock Exchange by March 2014. The size of the initial public offering is USD1 billion (£625m).
The business is being advised on the float by banks including JPMorgan Cazenove and Morgan Stanley, although it is unclear if further institutions will be involved in the listing. Tianhe had previously planned to float in London in November 2011, but that plan was aborted as a result of the turbulent equity markets at the time.
Instead, Morgan Stanley Private Equity Asia, a USD2.4 billion fund, invested USD300 million in Tianhe in an off-market deal, buying a minority stake.
The investment was intended to fuel Tianhe’s plans to expand into the U.S. and other parts of Asia.
In 2012, its turnover was in the region of USD600 million, and was growing at 50% a year due to its market leadership position in China.
In 2011, Chinese companies accounted for 31.7% of all initial public offerings around the world, raising a total of USD72.3 billion. Following a slowdown in 2012, it is expected that Chinese and Hong Kong companies will again look to overseas bourses as a way of raising capital.