Kinetic Mines prices IPO at bottom to raise $150 million

Kinetic Mines and Energy, which is developing a thermal coal mine in China’s Inner Mongolia region, has raised HK$1.17 billion $150 million from its Hong Kong initial public offering. This makes it the third-biggest deal in the city so far this year after Sunshine Oilsands and Xiwang Special Steel, which raised $580 million and $171 million respectively.

However, the price was fixed at the bottom of the range and retail investors showed very little interest in the deal, leaving the 10% retail tranche severely undersubscribed. In fact, the demand was only enough to allocate 2.5% of the overall offering to Hong Kong retail investors, while the remaining 97.5%...