Galaxy Securities prices IPO at low end to raise $1.1 billion

Retail investors take 30% of the base deal, prompting a squeeze in the institutional order book even though the Chinese brokerage comes at a relatively tight discount to Haitong Securities.
Photo: ImagineChina
Photo: ImagineChina

China Galaxy Securities has raised HK$8.31 billion $1.1 billion ahead of its Hong Kong listing next week, after pricing its initial public offering at HK$5.30 per share.

The price was close to the low end of guidance provided by the bookrunners on the final day of bookbuilding and in the bottom quarter of the original price range. Even so, Galaxy Securities was priced at only a thin discount to Haitong Securities, which was viewed as the key benchmark, after the latter fell 6.6% during the final two days of the bookbuilding.

Haitong gained 1.5% yesterday, however, which should have made investors a bit more comfortable...

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