China High Speed and management sell $418 million of stock

The well-received deal is completed at a 6% discount with the company taking just over two-thirds of the proceeds.

Hong Kong-listed China High Speed Transmission and parts of its management last night raised HK$3.25 billion $418 million from a share sale that was covered within 30 minutes and attracted strong interest from long-only funds in particular.

The demand indicates that global investors haven’t lost their appetite for alternative energy plays -- China High Speed makes gearboxes for wind power turbines -- which should be encouraging for a number of other Chinese companies in this sector that are currently lining up to go public.

According to a source, the deal was more than three times covered and attracted well over 100 investors. Given that the stock is not that liquid, the placement provided an...

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