Pacific Basin fills IPO with institutions

Shipper completes only Hong Kong listing in 2004 where institutional demand is greater than retail.

Minor dry bulk shipper Pacific Basin raised HK$1.09 billion $140 million from a Hong Kong IPO yesterday Thursday after securing a much stronger order book than initially anticipated. The institutional order book closed 10.5 times covered and the retail order book 3.6 times covered, leading to pricing at HK$2.50 per share, the mid-point of the deal's indicative price range.

It is very unusual to have such a large oversubscription differential in favour of institutional investors. Normally it is the other way round, with retail investors dominant.

No other Hong Kong IPO this year has built an order book where the institutional oversubscription multiple is higher...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222