Lead manager Goldman Sachs began pre-marketing a $350 million to $450 million listing of Chinese hardware telecom equipment manufacturer ZTE Corporation on Monday November 15.
The deal is unusual because it represents the first time an A share company has sought a secondary listing in Hong Kong, rather than the other way round, which has been the norm in the past. As such, the offering presents a number of challenges, which if successfully overcome, may prompt other Mainland listed such as Minsheng Bank to follow suit.
The biggest hurdle is the fact that the 29 A-shares, which are currently listed in both centres, average a 50%...
