Zhengzhou Coal raises $296 million from Hong Kong IPO

Demand for the Chinese mining machinery company is lacklustre and the deal crosses the line only after at least one bookrunner steps in to provide support.
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Zhengzhou Coal is China’s biggest maker of hydraulic roof supports
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<div style="text-align: left;"> Zhengzhou Coal is China’s biggest maker of hydraulic roof supports </div>

Shanghai-listed Zhengzhou Coal Mining Machinery has raised HK$2.3 billion $296 million from its initial public offering in Hong Kong, after fixing the price at the bottom of the range late on Wednesday.

As with other recent deals, retail investors showed little interest in the offering and, as a result, the 10% retail portion of the deal was cut to 2%, while the institutional portion was increased to 98% from 90%.

Even so, one of the bookrunners for the IPO had to step in to buy a small portion of the deal to cover a demand shortfall. According to a source, the deal was technically covered, although...

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