Dali Foods takes small serving as IPO raises $1.1b

Chinese food and beverage manufacturer Dali Foods priced an initial public offering in Hong Kong on Friday at the lower half of the indicative price range amid strong price sensitivity shown by institutional investors.

The final price was settled at HK$5.25 per share against an indicative price range of HK$5.00-HK$6.15, generating total proceeds of HK$8.9 billion $1.1 billion, a source familiar with the situation told FinanceAsia.

Overall, the institutional tranche was multiple-times covered but orders were heavily concentrated in the lower half of the price range. Pricing in the upper half was not possible as there has not been sufficient demand...