An initial public offering by China Shengmu Organic Milk priced three days later than expected on Thursday after struggling with a rich valuation. The BOCI and Goldman Sachs-led deal raised HK$1.06 billion $137 million by selling 444.8 million shares at HK$2.39 per share, the very bottom of its indicative price range.
Both the retail and institutional tranches were covered. However, the lead managers' decision to leave the greenshoe unallocated shows how the deal was pushed across the finish line from behind rather than pulled over by investor demand.
Most of the shares were placed with Chinese companies and high net worth individuals in...
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