China Green CB has a tough first day

The fruit and vegetable producer's upsized Rmb1.35 billion deal drops significantly below par in the aftermarket. By contrast, CapitaCommercial Trust's CB reverses the performance in the grey market and finishes its first day above par.

China Green Holdings, which priced a Rmb1.35 billion $198 million three-year convertible bond late on Wednesday, had a tough day in the market yesterday with the CB tumbling to 96.75-97 late in Asian trading, according to market participants.

The decline was much greater than what could be explained by the 3.1% drop in the share price, and somewhat surprising given the seemingly favourable response to the initial sale on Wednesday. The CB was more than two times covered and was upsized from Rmb1.2 billion, by making use of half the Rmb300 million upsize option.

The deal was also priced at best terms for investors, suggesting that bookrunners Macquarie and UBS didn't push investors too much...

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