Xinchen China’s Hong Kong IPO draws strong retail appetite

The automotive engine manufacturer raises $90 million from its Hong Kong offering, while an upsized block trade in China Longyuan raises $135 million.
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Engine-maker Xinchen is a spin-off from Brilliance China
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<div style="text-align: left;"> Engine-maker Xinchen is a spin-off from Brilliance China </div>

Xinchen China Power Holdings, a manufacturer of light-duty gasoline and diesel engines, has raised HK$698.9 million $90 million from its initial public offering in Hong Kong, after pricing slightly above the bottom of the indicative range.

As with other IPOs in the city this year, Xinchen China attracted an enthusiastic response from retail investors who shied away from the IPO market for most of last year.

The Hong Kong public tranche was more than 20 times covered, triggering a clawback that boosted this portion to account for 30% of the deal, from the initial plan for 10%, sources said yesterday. The institutional tranche, which now...

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