Huatai's rate a 12-year winner
By Winny Wang |
February 12, 2010, Friday
|
Print Edition
Print Edition
THE winning subscription rate for Huatai Securities Co hit a 12-year high of 14.43 percent among companies listed on the Chinese mainland.
The Nanjing-based brokerage received oversubscriptions of 3.8 billion shares in an online tranche from retail and institutional investors, but they were successful in getting 549 million shares, it said in a filing to the Shanghai Stock Exchange yesterday.
Huatai set the offer price at the low end of an indicative range between 20 yuan (US$2.93) and 22 yuan each in the mainland's biggest initial public offering so far this year.
The mid-sized brokerage sold 784.56 million yuan-denominated shares, or 14 percent of its expanded capital, to raise 15.7 billion yuan. Huatai will use the proceeds to increase working capital and to expand financial derivative services.
Companies always set their offer prices at the top of an indicative range to raise the maximum amount of capital because investor enthusiasm almost guaranteed strong gains for new stocks on their trading debut.
But the situation changed after China XD Electric Co and China Erzhong Group Deyang Heavy Industries Co fell below their offer prices on debut amid weak sentiment.
The Nanjing-based brokerage received oversubscriptions of 3.8 billion shares in an online tranche from retail and institutional investors, but they were successful in getting 549 million shares, it said in a filing to the Shanghai Stock Exchange yesterday.
Huatai set the offer price at the low end of an indicative range between 20 yuan (US$2.93) and 22 yuan each in the mainland's biggest initial public offering so far this year.
The mid-sized brokerage sold 784.56 million yuan-denominated shares, or 14 percent of its expanded capital, to raise 15.7 billion yuan. Huatai will use the proceeds to increase working capital and to expand financial derivative services.
Companies always set their offer prices at the top of an indicative range to raise the maximum amount of capital because investor enthusiasm almost guaranteed strong gains for new stocks on their trading debut.
But the situation changed after China XD Electric Co and China Erzhong Group Deyang Heavy Industries Co fell below their offer prices on debut amid weak sentiment.
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