Two more Chinese firms intend to IPO in Hong Kong

Plan to raise a combined US$1.5 billion.

Huishan Dairy Holdings Co Ltd and China Grand Automotive Services Company are set to launch their initial public offerings, according to media sources.

Huishan hopes to launch pre-IPO marketing work on Sept 1. It submitted its application before the Hong Kong Stock Exchange's listing committee yesterday.

Headquartered in Shenyang, Huishan is the largest producer of milk in northeastern China. Swiss group Hero owns a stake in Huishan.

The company has an 110,000-strong dairy herd and about 1 million acres of grassland in Liaoning province. It aims to have 500,000 cows after the IPO.

China Grand Automotive plans to list at least US$500 million of its shares in Hong Kong. The IPO was confirmed by individuals with knowledge of the transaction. The Shanghai-based Chinese car dealer is planning to start the share sale by early 2014.

China Grand’s IPO would become the largest for a car dealership in Hong Kong since December 2010. The last car dealership IPO was by China Zheng Tong Auto Services Holdings Ltd that raised US$514 million.