Premium pricing for SMIC

Massive order book secures pricing right at the top of the range.

As expected, Semiconductor Manufacturing International Company SMIC achieved its aggressive pricing expectations on Friday, completing an upsized $1.8 billion IPO at the top end of the deal's indicative range. Joint bookrunners Credit Suisse First Boston and Deutsche Bank completed the world's third largest IPO of the year at HK$2.72 per share and $17.50 per ADS.

About 60% of the 5.15 billion share deal comprised primary shares 3.03 billion and 40% secondary shares 2.12 billion. The 772 million share greenshoe will also be all secondary shares and on full completion, the company will have a freefloat of 31.8%.

At this level, SMIC has priced at 2.3 times 2004 book....

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