China Machinery Engineering Corp, the State-owned contractor with projects in Nigeria, Serbia and Ivory Coast, plans to raise about $300 million in an initial public offering in Hong Kong, two people with knowledge of the matter said.

The Beijing-based unit of China National Machinery Industry Corp may begin to gauge demand for the IPO later this week, the people said, asking not to be identified because the information is private. China Machinery shares may start trading in Hong Kong in December, they said.

China Machinery is expanding overseas as China seeks closer ties with developing nations and greater access to raw materials in Africa. The company operates in more than 150 countries and regions, according to its website.

An external spokeswoman for China Machinery declined to comment on the IPO plan.

ABCI Securities Co, BOC International Holdings Ltd and ICBC International Holdings Ltd are among banks arranging the share sale, the people said.

Companies have raised $3.5 billion through IPOs in Hong Kong this year, down 78 percent from the same period last year, according to data compiled by Bloomberg.