Zhongwang mega IPO to raise $1.6b

China Zhongwang Holdings, the country's biggest extruded aluminum products maker, yesterday kicked off the world's biggest initial public offering (IPO) so far this year by starting to take orders from institutional investors for its $1.6-billion share sale.

Zhongwang plans to raise as much as HK$12.32 billion yuan by issuing 1.4 billion new shares in Hong Kong, in what could be the first $1-billion IPO in the world this year, according to Thomson Reuters data.

The aluminum products maker will use the proceeds from the new shares, which will be priced at HK$6.80 to HK$8.80 each, to expand production, repay loans and improve research and development capacity, according to its prospectus.