China’s leading engineering machinery company, Sany Heavy Industry, is moving forward with its plans to list on the Frankfurt Stock Exchange. This could be the first listing of its kind under the cross-border investment mechanism, as Sany is the first China-listed firm to choose Frankfurt through the Shanghai-London Stock Connect, which was expanded to include Switzerland and Germany last year.
Sany’s preparation for a Frankfurt listing has led the company to revise its internal rules, including shareholder and board discussion rules, articles of incorporation, and confidentiality and archive administration rules. The revisions are aimed at meeting regulatory requirements as the company prepares to issue Global Depositary Receipts (GDRs) in Germany. Additionally, the company has taken steps to comply with China’s national security requirements for offshore listings.
While the company has yet to disclose its fundraising targets or a specific timeline for the Frankfurt listing, it announced in December that it planned to sell GDRs equivalent to 5% of its share base to fund its international expansion. Sany describes itself as the world’s third-largest engineering machinery manufacturer and has operations in a number of countries around the world.
So what makes Frankfurt an attractive destination for Sany? The company cites Germany’s world-class manufacturing capability and its existing presence in the country as key factors in its decision. Sany acquired Putzmeister Holding GmbH in 2012 and has since established its largest offshore R&D and manufacturing base in Germany. Germany is also one of Sany’s biggest international markets, making it an ideal location for the company’s continued growth and expansion.
Sany’s potential listing on the Frankfurt Stock Exchange is a major milestone for the company and a testament to its commitment to international growth and expansion. As a leading player in the engineering machinery industry, Sany is well-positioned to take advantage of the cross-border investment mechanism and tap into new opportunities in Germany and beyond. With its revised internal rules and preparations underway, the company is poised for success as it sets its sights on a listing in Frankfurt.