Leoch International Technology, a Chinese lead-acid battery producer, has raised HK$1.78 billion $230 million from yet another popular initial public offering in Hong Kong.
Market demand for the battery manufacturer was very strong and bankers involved in the deal said they were surprised to see retail investors so enthusiastic to share a slice of China’s battery business.
Despite a relatively modest deal size, the Hong Kong public offering was around 260 times subscribed, while the institutional tranche was more than 26 times covered. The hefty retail subscription triggered a full clawback that increased the size of the retail tranche to 50% from 10% originally.
Full allocation clawbacks have been commonplace in...