Guotai Junan's IPO poised to be year's biggest

Chinese brokerage charges into the country's bull market with a deal pitched at a big discount to fair value estimates.
Can China's bull market stay afloat?
Can China's bull market stay afloat?

Guotai Junan Securities launched the world’s largest initial public offering of the year on Wednesday after setting the price for its Rmb30.1 billion $4.83 billion Shanghai listing at Rmb19.71 per share.

The flotation is a monster even by Chinese standards. It not only represents the country’s largest IPO in five years, but is also expected to help tie up as much as Rmb6.68 trillion in domestic liquidity as investors fight for the new batch of 25 A-share companies coming to market over the next five days.

However, analysts believe the deal will be a great success unless the A-share market’s...

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