Guolian Securities launched its Hong Kong initial public offering on Monday, pitching the HK$3.143 billion to HK$3.65 billion $405 million to $471 million deal at an attractive valuation in an effort to capture investors' attention at a time when markets remain extremely choppy.
Last week's A-share market collapse has not provided a firm foundation for the lead managers to try to build momentum and does not auger well for the overall sector's likely profitability in 2015. Guolian's small size relative to its peers it ranked 45th of Chinese brokers by market share in 2014 according to Wind database also means investors could easily overlook it.
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