Rundong Auto prices IPO at bottom

China Rundong Auto Group priced its shares at the bottom of the range in its Hong Kong initial public offering, relying on institutional support to get the deal done

The Chinese luxury automobile dealership raised $124 million after selling 268 6 million shares at HK$3 58 each, the bottom of the HK$3 58 to HK$3 98 range

Demand from international institutional investors allowed the syndicate to boost the international tranche to 96 8% from 90% originally, according to a term sheet Bankers close to the deal noted that the institutional book was oversubscribed, with the investors, a mix of long-only institutional investors, hedge funds and private banks, buying 241 8 million shares in the company...