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SCMP Reporter

Lumena Resources Corp,  the largest manufacturer of sodium sulphate  on the mainland, and Sinovel Wind, which makes wind turbines, are planning to raise  up to US$500 million from initial public offerings this year,  seizing on improving sentiment in the stock markets.
Lumena  plans to raise up to US$200 million by selling new shares in Hong Kong next month, while Sinovel Wind  targets as much as US$300 million later this year in Hong Kong or Shanghai, sources say. 
 'The listing hearing [for Lumena] will be in the  next two weeks and the deal will be in place in late May if the market is stable,'  a source  said. BOC International and Credit Suisse are arranging the share sale.
 Lumena secured a US$100 million pre-initial offering  loan from private equity firm Mandra Capital, which invests in early-stage agriculture, environmental service, renewable energy and new technology companies. 
'Since it's a pure industrial stock, I think it can only deserve to price in a single-digit  [price-earnings ratio] despite the strong market momentum,'  a fund manager said.
Sodium sulphate is mainly used for light industries such as printing and dyeing, syringe, glass making and paper making.  Lumena has a  production capacity of 1.6 million  tonnes a year.
Beijing-based Sinovel, which makes 1.5 megawatt wind power production systems,  plans to introduce  3 megawatt systems by the end of this year, followed by  larger 5 megawatt systems  next year for  onshore and offshore use.
'All the [wind] players are getting good orders and benefiting from the 2006 regulation that power companies have to take 3 per cent of their portfolio from non-hydro renewable energy, which basically means wind, but there are growing pains,'  DBS Vickers analyst Dennis Lam said.  
'Execution is growing fast so they have to manage getting the orders out but also keep the quality up as they open new facilities. As the industry continues to move to larger and larger blades, they are having more problems with failure as well.' 
Emerging-market players ran into trouble when equipment made by India's Suzlon failed to live up to generation forecasts when they were deployed in the United States last year, and this month new questions of quality dogged  Suzlon's products.
The Hong Kong  initial offering market has seen signs of recovery on the back of liquidity inflows and an improving equity market, after  having a tough time for more than a year.
New main board listing candidate China Zhongwang Holdings, the eighth Hong Kong  offering so far this year, is attempting to become the world's largest  share offering  this year with its HK$13.2 billion deal  in progress.
The mainland's largest aluminium extruder started a roadshow for its  offering last week and has received a strong response from institutional investors by paying a commitment of HK$25 billion for Zhongwang shares, representing two times more orders for the institutional tranche, sources said.
Meanwhile, BBMG Corp, one of the mainland's top construction material manufacturers, is speeding up its planned US$500 million Hong Kong  initial offering and targeting an early June start date, sources said. 
UBS and Macquarie are the bookrunners of the share sale.
Bullish market
Hong Kong IPO market shows signs of recovery as liquidity returns
China Zhongwang aims to be the world's largest IPO this year at, in HK$: $13.2b



Lumena, Sinovel target US$500m from share offers