What many thought would prove to be one of the most difficult Chinese equity offerings of recent years has turned out to be one of the luckiest. After deliberating for weeks whether to launch an IPO for Aluminum Corp of China Chalco, lead managers Morgan Stanley and CICC have managed to hit the market just as investors move out of cash and seek to position themselves for 2002.
Sector specialists consequently believe that the company has been able to secure a valuation that industry fundamentals might not yet justify. As one puts it, This company has been priced cheap relative to global comparables, but we believe that global comparables are running ahead of themselves,...
