HK IPO pricing immune to A-share jitters

The IPOs of Legend Holdings and Red Star Macalline last week defied plummeting A-shares to price at the top, as books opened for Universal Medical's HK float.
A double-digit drop in A-shares did not affect sentiment for Legend or Red Star
A double-digit drop in A-shares did not affect sentiment for Legend or Red Star

A near-12% drop in China’s A-share markets last week has not affected Hong Kong’s IPO market, with a number of issuers pricing shares at the top of the range, indicating there is still demand for primary offerings.

Despite plunging markets last week, Red Star Macalline Group, backed by private equity firm Warburg Pincus, managed to price its shares at the top of its indicative range and raise $931 million in its IPO.

Meanwhile Legend Holdings, the largest shareholder of personal-computer maker Lenovo Group, raised just over $2 billion in its floatation. Allocations were still being finalised Sunday night in Hong Kong, but a source...

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