Lead managers CLSA and HSBC had to price a 182 million share IPO for Dah Sing Bank at the bottom of the range on Friday after the institutional order book closed just 1.1 times covered. Market participants describe the HK$2.3 billion $296 million deal as one of the most challenging Hong Kong IPO's of the year.
Pricing came just two days after a disappointing debut by Ping An. It was very sad to see Ping An slip below its issue price when it had gone out of its way not to be greedy, says one banker. It just shows that investors are very wary of the IPO market...
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