On the heels of China XD Electric's trading debut, which was the weakest in years, China First Heavy Industries has added more pressure on China's A-share market after its initial public offering raised less than the targeted amount. The smaller deal size was a result of the company setting the final price below the top of the indicated range.
It's almost routine for Shanghai issuers to price their IPOs at the top end of a price range and raise as much as they can. But recently, China's IPO market has demonstrated a lukewarm response to new issues as companies have fallen below issue price on their first trading day.
First Heavy,...
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