The IPO of China's second-largest automaker was priced yesterday November 29 at HK$1.60 per share, just shy of the midpoint of the deal's HK$1.45-$1.80 indicative range. The CICC, Deutsche Bank and Merrill Lynch-deal raised $590 million post shoe and was four times covered by institutional investors and seven times overall. At 2.5 times covered, retail interest was relatively muted.
Due to Dongfeng's links with major Japanese car makers Nissan and Honda, the Japanese public offer without a listing POWL saw especially strong demand, with orders totaling $1.9 billion. The POWL ended up with just under 5% of the final allocation.
Given the demand of...
