Hunan Nonferrous mines strong demand for IPO

Retail fremzy sees offer heavily oversubscribed despite 10% cap on institutional orders.

By Anette Jönsson

March 26, 2006

Hunan Nonferrous Metals has raised HK$1.77 billion $227.5 million from its Hong Kong IPO after fixing the price at the top of the deal's HK$1.20 to HK$1.65 indicative range. Retail investors committed at least HK$124 billion $15.94 billion to the offer. By contrast, Link REIT attracted HK$107 billion of retail interest for an IPO last November that was more than 10 times bigger than Hunan Nonferrous.

Observers say the strong demand was driven by the company's focus on a strategically important sector for the Chinese economy, as well as continuing momentum in the China IPO market.

Anticipating strong interest, joint bookrunners BOC International and Morgan Stanley capped institutional orders at...

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