Guotai Junan: Hong Kong IPO priced to perform

Order books already covered for Hong Kong's largest flotation since Postal Savings Bank came to market in September 2016.

China's second most profitable brokerage company launched its Hong Kong initial public offering on Monday at a valuation, which should ensure secondary market performance if markets hold steady until the deal is priced on Friday.

Guotai Junan's IPO breaks with recent tradition and has been structured as a fixed-price offering at HK$15.84 per share, to raise HK$16.47 billion $2.12 billion pre-greenshoe. This makes the valuation work relatively easy for investors, given the group is already listed in Shanghai.

Its international arm is also listed in Hong Kong similar to Haitong Securities, which it leapfrogged in 2016 to become China's second most profitable broker. ...

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