Hopewell Highway Infrastructure HHI completed a 720 million share offering towards the bottom end of the deal's indicative price range yesterday Thursday. Under the lead management of Citigroup, the deal was priced at HK$4.18 per share compared to an indicative range of HK$4.10 to HK$4.75 and raised proceeds of $385 million pre shoe.
On the surface, pricing at these levels seems uninspiring. However, the company set out with an extremely aggressive valuation and the institutional order book was consequently said to have been highly price sensitive at the bottom end of the range. From the outset, the leads, therefore, knew their ability to maximize all available distribution...
