Guotai Junan IPO entices global institutions

China's second most profitable brokerage company, Guotai Junan, allocated the institutional tranche of its Hong Kong initial public offering on Monday after attracting the kind of balanced order book syndicate bankers had almost give up on.

Bankers reported an oversubscription ratio of roughly three times for the institutional tranche, with participation from just over 100 accounts and a concentration ratio, which saw roughly 65% allocated to the top 10 investors.

Demand and allocations for the HK$16.47 billion $2.12 billion deal pre-greenshoe were unsurprisingly skewed towards China.

However, the deal also attracted strong interest from offshore hedge funds, and bankers said global long-only...