Guotai Junan IPO entices global institutions

At last: a Chinese IPO in Hong Kong which institutions believe has upside potential.

China's second most profitable brokerage company, Guotai Junan, allocated the institutional tranche of its Hong Kong initial public offering on Monday after attracting the kind of balanced order book syndicate bankers had almost give up on.

Bankers reported an oversubscription ratio of roughly three times for the institutional tranche, with participation from just over 100 accounts and a concentration ratio, which saw roughly 65% allocated to the top 10 investors.

Demand and allocations for the HK$16.47 billion $2.12 billion deal pre-greenshoe were unsurprisingly skewed towards China.

However, the deal also attracted strong interest from offshore hedge funds, and bankers said global long-only...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222