Hotels group Jinmao Investments and Jinmao China raised HK$3.2 billion $414 million from its Hong Kong listing on Wednesday after pricing a 600 million-share stapled unit deal at the bottom end of its indicative 30-cent range.
Negative sentiment towards the Chinese real estate sector meant the spin-off by Franshion Properties, a subsidiary of Sinochem, was always going to be a tough sell among general investors, even at HK$5.35 per unit. So unsurprisingly both the retail and preferential tranches of the initial public offering ended undersubscribed, sources familiar with the matter said.
Retail investors applied for only 30% of the 60 million units on...
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