bird-flu-outbreak-takes-shine-off-dachan-ipo

Bird flu outbreak takes shine off DaChan IPO

The chicken meat producer draws modest demand relative to other Hong Kong IPOs and sets the price below the top of the range.

September 27, 2007

DaChan Food, a China-based producer of chicken meat, animal feeds and processed food, was unable to benefit fully from the current frenzy for initial public offerings in Hong Kong amid concerns of another bird flu epidemic. The offering was priced below the top of the indicative range.

The level of demand was well in excess of the shares on offer, but in light of the latest news, sources say the company wanted to leave a bit more on the table for investors and ensure a better aftermarket performance. The price was fixed at HK$2.90 per share, versus a range of HK$2.20 to HK$3.00, which allowed the company to raise HK$899...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 1 article per month from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222