Beijing Building Materials to launch IPO in Hong Kong

Beijing Building Materials Group Corp (BBMG), one of the country's largest building materials manufacturers, plans to start its initial public offering (IPO) in Hong Kong, according to a person close to the situation.

The company expects to raise between US$500 million and US$700 million in the IPO, and premarketing will start next week, said the source.

UBS AG and Macquarie Group Ltd have been hired to handle the new share offering, but neither bank has offered any details.

The company initially planned to list on the stock market last October, but deferred the plan due to the poor market situation.

Last month, the company issued seven-year corporate bonds worth RMB 1.9 billion at a coupon rate of 4.32%.

The Beijing-based company, which has over twenty years experience in property development, has land reserves of 327 million square meters.