Guotai Junan raises $226 million from Hong Kong IPO

Strong retail interest boosts the retail tranche to 40% of the deal, while price sensitive global investors keep the price below the mid-point of the range.

Guotai Junan International, the Hong Kong arm of Chinese brokerage firm Guotai Junan Securities, has raised HK$1.76 billion $226 million from an initial public offering in Hong Kong after fixing the price below the mid-point of the range.

Sources said the deal was multiple times covered at the top end, but there were supposedly a few global long-only accounts that were unwilling to pay more than the HK$4.30 per share where the price was eventually fixed. And in order to keep them in the deal, the company chose to be less aggressive on pricing. The shares were offered in a fairly wide range between HK$3.88 and HK$5.63.

Still, the company was...

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