china-properties-returns-to-the-market-at-a-deep-discount-to-nav

China Properties returns to the market at a deep discount to NAV

The $208 million IPO, which consists partly of previously privatised assets, was priced towards the low end of the range.
China Properties Group on Thursday completed an initial public offering that will allow the same assets that were privatised by the chairman in 2003 to return to the Hong Kong market.

Remembering that the previous buyout was done at a sizeable discount to net asset value, many investors were sceptical about the long-term intentions of the controlling shareholder, however. This limited the total demand and forced the deal to be priced close to the bottom of the indicated range, or at a discount of more than 40% to the estimated post-money NAV.

The deal comprised 450 million new shares, which were offered at HK$3.50 to HK$4.70 apiece and were priced at HK...
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