Tongfang eyes HK to list unit

Tsinghua Tongfang Co plans to list its subsidiary in Hong Kong in the second half of this year to raise funds to finance its overseas expansion, the Shanghai-listed firm said Monday.

Listing the subsidiary, Technovator, which provides automation system and related services, in Hong Kong in the second half of 2011 is "part of the company's strategy to expand globally which will improve our competitive ability and help us hedge risks," said Tongfang in a statement to the Shanghai Stock Exchange yesterday.

Technovator, which is registered in Singapore, has no plans to sell stakes to strategic investors before its planned Hong Kong listing. It will use the proceeds from its initial public offering to expand its international sales networks.

To smooth its listing, Technovator, which is 47.4 percent controlled by Beijing-based Tongfang, will expand its share base by splitting every share into 40 and plans to sell at least 25 percent of the firm, according to the statement.