Minor dry bulk shipper Pacific Basin raised HK$1.09 billion $140 million from a Hong Kong IPO yesterday Thursday after securing a much stronger order book than initially anticipated. The institutional order book closed 10.5 times covered and the retail order book 3.6 times covered, leading to pricing at HK$2.50 per share, the mid-point of the deal's indicative price range.
It is very unusual to have such a large oversubscription differential in favour of institutional investors. Normally it is the other way round, with retail investors dominant.
No other Hong Kong IPO this year has built an order book where the institutional oversubscription multiple is higher...
