China South Locomotive raises $532.6m in HK IPO
15 August 2008
China South Locomotive & Rolling Stock Corp raised US$532.6 million (HK$4.16 billion) from its initial public offering in Hong Kong after pricing its shares in the middle of an indicative range, the South China Morning Post reported. The mainland's largest train maker sold 1.6 billion H shares at HK$2.60 (US$0.33) per share, from a range of HK$2.49 to HK$2.76 (US$0.31-US$0.35), the paper said. Sources described investor reaction to the listing as "modest". Shares for retail investors were about 20 times oversubscribed while those for institutional investors were 10 times oversubscribed. "I thought the company might price [the offer] at the higher end as it had recorded an overwhelming subscription to its A-share offering earlier in Shanghai," an unnamed fund manager was quoted as saying. China South Locomotive earlier this month raised US$956 million in a Shanghai IPO.