Nine Dragons Paper wraps up IPO

Institutional orders capped at $20 million each as retail investors walk off with half the deal.
Nine Dragons Paper has priced its initial public offering right at the top end of the price range at HK$3.40 per share after strong demand from both institutional and retail investors.

That price has enabled ChinaÆs largest container board manufacturer to raise HK$3.40 billion $438 million, which makes the BNP Paribas Peregrine and Merrill Lynch-led offering the largest IPO in the Hong Kong market since Link ReitÆs $2.5 billion offering in late November.

If the 15% greenshoe is exercised in full, the total proceeds will increase to $504 million. Nine Dragons offered one billion new shares, or 25% of the company.

The institutional portion of the offer was said to have been...
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