Biz Scene: GRAPEVINE

$1.2b raised

Sinotruk (Hong Kong) Ltd, China's top heavy truck maker, raised $1.2 billion after it priced its Hong Kong initial public offering at the top of an indicative range, Reuters yesterday reported, citing a source close to the deal.

Sinotruk priced its IPO at HK$12.88 apiece, compared with a range of HK$10 to HK$12.88, the source said, adding that the retail portion of the offering had been more than 300 times subscribed.

Sinotruk had a 20.8 percent market share in the first nine months of 2007, including sales volume from its parent company during the period.

JP Morgan and China International Capital Corp Ltd are sponsors of the offering.

Pipeline plan

China's top oil and gas firm PetroChina is drafting plans for a third West-East pipeline to carry Russian and domestic gas to the country's booming east, Reuters reported, citing an unnamed company source.

The plans are in a preliminary stage, with no on-site investigations yet carried out, but they envisage a route from the Altai area to the Bohai Bay area in the eastern region, the source said.

"The third line will likely be formally proposed soon after the full start of the construction of the second line early next year," the source said.

Bank's IPO

Changshu Rural Commercial Bank, a mid-sized city lender in East China, plans to raise about 5 billion yuan ($674 million) in a domestic initial public offering (IPO) in 2008, Reuters reported, citing sources close to the situation yesterday.

The bank, based in Changshu city near Shanghai, had recently hired China Securities Co Ltd to advise on the planned IPO, the sources said.

Changshu Bank's board had also recently approved a plan to sell a 10 percent stake to Shanghai-based Bank of Communications ahead of the IPO, they said.

(China Daily 11/22/2007 page15)