Chinese AC & heat tech company plans $1 billion IPO in Hong Kong

Chinese AC & heat tech company plans $1 billion IPO in Hong Kong

Chinese refrigeration components maker Zhejiang Sanhua Intelligent Controls is planning a $1 billion secondary listing in Hong Kong, adding momentum to the city’s IPO market revival. The company aims to raise up to HK$8.12 billion (US$1.03 billion) by selling 360.33 million shares priced between HK$21.21 and HK$22.53 each [1].

Sanhua expects to begin trading on the Hong Kong exchange from June 23. The company has secured cornerstone investor agreements covering as much as 57.7% of the shares being offered, with notable investors including UK asset manager Schroders, Singapore wealth fund GIC, and ICBC Wealth Management [2].

The substantial listing comes as Hong Kong’s IPO market shows signs of recovery after a period of reduced activity. In the first half of 2025, Hong Kong IPOs and spin-offs of China-listed companies boosted average listing proceeds over five-fold from a year earlier [3].

Sanhua, which supplies refrigeration and air-conditioning components for various applications, will use the proceeds for research and development, product innovation, and growing overseas production. The company expects to list its shares on June 23 [4].

Sanhua's products are subject to U.S. tariffs on shipments heading to America from China, Mexico, and Vietnam. However, the company does not expect additional U.S. tariffs to significantly hurt its business or expansion plans [2].

References:
[1] https://www.investing.com/news/stock-market-news/chinese-refrigeration-parts-maker-plans-1-billion-hong-kong-listing-93CH-4094309
[2] https://www.marketscreener.com/quote/stock/ZHEJIANG-SANHUA-INTELLIGE-6497834/news/Chinese-AC-Heat-Tech-Company-Plans-1-Billion-IPO-in-Hong-Kong-50231419/
[3] https://www.bloomberg.com/news/articles/2025-06-12/zhejiang-sanhua-seeks-1-billion-in-hong-kong-listing
[4] https://www.scmp.com/business/banking-finance/article/3314294/zhejiang-sanhua-seeks-us1-billion-hong-kong-listing-chinese-firms-rush-city