Zhongsheng prices IPO near low end of range

The Chinese car retailer prices at HK$10 per share and raises $369 million – well below the $1 billion that it had targeted before the deal was reduced in size ahead of the bookbuild.

Chinese car retailer Zhongsheng Group Holdings has raised HK$2.86 billion $369 million from its Hong Kong initial public offering after pricing the deal towards the low end of the offering range. The money raised is significantly below the company's initial target the deal was reduced from an early plan to raise up to $1 billion when the bookbuilding opened after a week's delay.

The delay, which was caused by a combination of volatile markets and the inability of the company and the bookrunners to agree on an appropriate valuation, and the negative press surrounding it looks to have had a negative impact on the demand from retail investors in particular. According to sources, the...

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