Sanhua Intelligent prepares for a $1.12 billion Hong Kong IPO, with legal matters handled by CC, T&T, and related links, under the supervision of Jingtian.
**Sanhua Intelligent Achieves A+H Dual Listing in $1.12 Billion Hong Kong IPO**
Zhejiang Sanhua Intelligent Controls Co., a leading global manufacturer of refrigeration control components and HVAC technology, has recently embarked on a significant milestone with its Hong Kong Initial Public Offering (IPO). The company aims to raise approximately US$1.12 billion, marking one of the largest IPOs on the Hong Kong Stock Exchange (HKEX) so far in 2025.
The IPO priced Sanhua's H-shares at an approximately 18.5% discount to its A-shares, with the intention of attracting international investors and capitalizing on valuation arbitrage between the mainland China and Hong Kong markets. The dual A+H share listing will facilitate Sanhua's globalization strategy and enhance its market profile.
Sanhua's main businesses include components for refrigeration and air-conditioning appliances, automotive parts, and bionic robot electromechanical actuators. The proceeds from the IPO will be allocated towards expanding its automotive parts business, developing its bionic robot electromechanical actuators business, and deepening R&D, expanding production capacity, and automation at Sanhua's facilities in China.
Additionally, Sanhua plans to upgrade its digital and intelligent infrastructure across all business operations, implement a localised supply chain strategy, and strengthen its global sales and service networks to serve international markets better. The company will also support growth in strategic sectors such as new energy vehicles and green refrigeration solutions.
Legal support for the IPO was provided by Clifford Chance, T&C Law Firm, Linklaters, and Jingtian & Gongcheng. Jean Thio, Xiang Tianning, Christine Xu, and Lipton Li co-led the respective teams. The Clifford Chance team provided support from their Beijing, Hong Kong, and Shanghai offices.
Established in 1994 as a Sino-Japanese joint venture, Sanhua was first listed on the Shenzhen Stock Exchange in 2005. The company has undergone a shareholding reform in 2001 and has contributed to drafting 15 industry standards, holding over 2,200 invention patents. With its cutting-edge products and strategic partnerships with top-tier global firms, Sanhua is recognised as a world-class OEM supplier for industries including refrigeration, home appliances, and new energy vehicles.
The Sanhua IPO comes shortly after Haitian Flavouring and Food's $1.29 billion offering. Sanhua's IPO proceeds are expected to fund continued innovation, capacity expansion, and global market development as part of its broader globalization and growth strategy.
- The law firms Clifford Chance, T&C Law Firm, Linklaters, and Jingtian & Gongcheng provided legal support for Sanhua Intelligent's A+H dual listing, which is a significant business move in the finance industry.
- Sanhua aims to allocate the proceeds from its Hong Kong IPO towards various business expansions, including the automotive parts and bionic robot electromechanical actuators businesses, R&D, production capacity, and automation in its Chinese facilities, indicating a strategic focus on multiple industries like finance, business, and technology.
