Hong Kong goes Reit crazy

An IPO for Prosperity Reit was priced at the top of its price range yesterday (December 8) after attracting massive demand from both retail and institutional investors. Under the lead management of JPMorgan and Merrill Lynch, an 888 million unit deal was priced at HK$2.16 per unit, netting the Cheung Kong group HK$1.92 billion ($246 million). There is also a 10% greenshoe, which could bump final proceeds up to $270 million.