Guangzhou RF Properties priced a $254 million IPO on Friday July 8 via lead managers Credit Suisse First Boston and Morgan Stanley in the face of considerable retail indifference.
The 183.9 million share deal faced a very weak primary market in which the previous three Hong Kong IPOs have all traded down by 10%-20% and sentiment towards the China property market has slumped. In these circumstances it would not have surprising if the deal had been priced out of its range or even been pulled. Indeed, two other equity deals in the market, for STX Pan Ocean Shipping and Kingboard Chemical, had to cut their price ranges on Friday...
