Investors reconfirm 98.8% of Sun Art Retail allocation

Retail investors will be allocated 18.7% of Sun Art's $1 billion IPO after reconfirming 93.3% of their original allocation after the detection of a prospectus error. The process results in an overall take-up ratio of 98.8%.
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Photo: AFP</div>
<div class="ArticleImageCaption" style="border-width: 0px; text-align: right; padding: 0px; font-size: 7pt; color: rgb(119, 119, 119);"> Photo: AFP</div>

Most retail investors stuck with their earlier decision to invest in Sun Art Retail Group’s initial public offering after the China-based hypermarket operator was forced to delay its trading debut and reconfirm all retail orders due to an error in the original prospectus.

And after an initial dip when the error was discovered, the grey market price for Sun Art has returned to its earlier levels, indicating the possibility of a 20% gain when the stock starts trading. The actual trading debut isn’t until next Wednesday July 27, but at the moment, at least, it looks like the hiccup will have had little impact on the deal.

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