MTR privatisation an all-round hit

International investors are facing a massive scale back in allocations after the one billion share offering for Hong Kong''s MTR Corp closed hugely oversubscribed yesterday (Thursday).

The Hong Kong government and global co-ordinators Goldman Sachs, HSBC and UBS Warburg have been presented with an allocation nightmare this weekend, as they try to divide up a roughly $16 billion order book for a $1.21 billion deal, at the top end of its indicative range.

Observers report that the institutional order book has closed around the $10 billion level, representing a roughly 10 times oversubscription level to the $964 billion worth of shares, initially be available should pricing come at the top of the range under an 80%20% institutionalretail split.

Where the domestic book is concerned, bankers report that roughly 600,000 completed applications had been counted late...

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