Within a day of grey market trading, brokers were reporting trades at HK$3.80 for the 240 million share deal, which priced on Saturday at HK$2.25 per share.
With CLSA as lead manager, the deal came at the very top of its HK$1.69 to HK$2.25 indicative range and on a pe ratio of 12 times 2001 earnings and 15% discount to DCF. Because of massive oversubscription on the retail tranche, full clawbacks were instituted taking the retail IPO up from 10% to 50% of the offering and the institutional placement down to 47%, after a preferential share offer to KMB shareholders was accounted for.
Observers ...
