Jinmao seals IPO at bottom of range

Tight allocations for yield play, which failed to overcome concerns about the Chinese property market.

Hotels group Jinmao Investments and Jinmao China raised HK$3.2 billion $414 million from its Hong Kong listing on Wednesday after pricing a 600 million-share stapled unit deal at the bottom end of its indicative 30-cent range.

Negative sentiment towards the Chinese real estate sector meant the spin-off by Franshion Properties, a subsidiary of Sinochem, was always going to be a tough sell among general investors, even at HK$5.35 per unit. So unsurprisingly both the retail and preferential tranches of the initial public offering ended undersubscribed, sources familiar with the matter said. 

Retail investors applied for only 30% of the 60 million units on...

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