Signs of a rout in Chinese equities are providing an extremely poor backdrop for the large number of Hong Kong initial public offerings currently in the market, with investors consequently pushing for pricing towards the bottom end of indicative ranges.
The only exception appears to be Legend Holdings, where a compelling valuation and the group's very strong brand name has resulted in an institutional oversubscription ratio of fives times at strike ie no price sensitivity at the end of the second day of book building in Asia on Tuesday.
The other two sizeable flotations in the market for China's largest coal bed methane CBM producer AAG...
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