Shanghai Prime Machinery Co., a unit of State-owned Shanghai Electric (Group) Corp., will raise up to HK$1.26 billion (US$162.58 million) in an initial public offering (IPO) in Hong Kong to fund an expansion of its precision industrial component manufacturing business.

The firm will sell 600.6 million new shares, or 44.6 percent of its enlarged share capital after the offering, with an IPO price range of HK$1.70 to HK$2.10 a share.

Of the IPO, 90 percent of the shares will be offered to international investors, with the remainder in Hong Kong. Shanghai Prime Machinery produces screws, fasteners, bearings, large turbine blades, electric wires, cables and ship cranks.

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