The launch of gold explorer Fujian Zijin Mining Industry's HK$1.15 billion initial public offering hit a glitch yesterday, with angry investors claiming there were not enough listing prospectuses to meet an overwhelming demand.
Bank of China (Hong Kong) (BOC), the sole receiving bank for the IPO, accused sponsor China Everbright Capital of mismanagement after it failed to deliver some 55,000 prospectuses on time. The 45-minute delay in delivery led to queues of investors lining up in front of BOC headquarters in Central and outside some of its 15 branches, as the bank held up handing out application forms until the prospectuses arrived.
Hong Kong Exchanges and Clearing (HKEx) said its listing division was following up the matter with China Everbright in a bid to ensure the IPO, which closes on Tuesday, proceeds smoothly. The exchange said sponsors were obligated to assess market demand and prepare enough prospectuses and application forms.
Zijin and China Everbright later said they would triple the number of prospectuses to 1.5 million copies, while the number of application forms would be more than doubled to 2.5 million copies from 1.2 million.
Fujian-based Zijin plans to float 348.3 million H shares on the main board on Dec 23, at an indicative price range of HK$2.90 to HK$3.30 each, raising about HK$934 million in net proceeds.
Chia Hsin Cement Greater China (699) debuted today. It seemed that investors believed that every IPO stock would offer handsome returns to subscribers on the first trading day under the market conditions. Following the stellar performance of newly listed PICC Property and Casualty (2328), Chia Hsin closed at 2.175, up 47% compared to its IPO price of $1.48 per share.
China Life Insurance's (2628) share offer was so popular that it was 150 times oversubscribed in its IPO, and the institutional tranche was also reported to have 15 times covered with orders. Because of strong enthusiasm, retail investors are expected to be allocated with as much as 20% of the offer shares, up from the 5% originally planned. About 91% of the IPO are new shares while the remaining 9% are the existing shares sold by its parent China Life Insurance (Group) Co. The company is likely to set its offer price close to the upper end of the indicative range of HK$2.98 to HK$3.65, implying that the price represents 14x FY04 estimated earnings. The stock will be listed on the HK bourse on 18 December.
Great Wall Automobile (2333) also announced its IPO subscription results today. Its public offer shares were over subscribed by 682 times. The total amount of money locked up in the subscription was $104.3bn. Its share will begin trading next Monday. Let's see how much it would gain in its first day of trading amid the local fever of IPOs.
The IPO fever will continue next week as investors are now snapping up copies of the prospectus of a coal mining company, Fujian Zijin (2899). It was reported that the international share placing had been more than 13x oversubscribed. The price per share is also likely to reach its upper end of $3.3.
die chinesischen Ipos ziehen los an der Nasdaq
NEW YORK (CBS.MW) - Chinadotcom said it'll launch an initial public offering of its CDC Mobile software
unit as the tech firm moves to cash in on market hunger for Chinese investments.
Riding a 200 percent rise in its stock price in the past year, Chinadotcom (CHINA is taking a play out of the IPO book from the roaring 1990s, when high flying tech companies launched red-hot IPOs by carving out units and selling them to eager investors.
Chinadotcom's announcement comes the same day China Life (LFC ) is expected to officially announce pricing on its $3 billion IPO. The IPO is scheduled to trade on Dec. 17. . China Life reportedly priced its IPO at HK$3.625 each -- near the top of its range of HK$2.98 to HK$3.65, Reuters and Bloomberg reported Friday, citing bankers and a source close to the deal.
A person who answered the phone at the Citigroup syndicate desk declined to comment on the price of China Life
Chinadotcom said it'll reorganize its mobile and portal unit as a wholly-owned subsidiary, chinadotcom Mobile Interactive Corp.
Chinadotcom plans to register the stock of CDC Mobile as American Depositary Shares.
The company said the IPO will, "fund the operations of CDC Mobile following its reorganization as an independent company" with a business of providing "mobile services and applications, advertising and interactive media and Internet services."
The offering is expected to debut in the first half of 2004, subject to SEC effectiveness and the regulatory OKs.
China Life, which is listing in New York and Hong Kong on Dec. 17 and 18 respectively, priced 161 million shares at $18.68 each as part of the U.S. offering of American Depositary Shares, according to Dealogic, the New York-based IPO tracking firm.
In a sign of huge demand for the IPO, China Life (LFC priced near the top of its $15.35-$18.80 range and upped the size of the deal to 161 million shares, from the earlier level of 153 million.
At $3 billion, China Life's IPO is the biggest in the world this year after British telephone directory Yell's $1.9 billion offering.
It's also the second biggest ever to come out of China after China Unicom's (CHU $5.25 billion blockbuster back in 2000.
The pricing also comes on the heels of another phenomenally successful Chinese IPO -- Shanghai-based travel Web site Ctrip (CTRP U.S.-listed shares of Ctrip.com, which priced at $18, opened at $24.01 on the Nasdaq Tuesday and climbed to a high of $37.35, becoming the first IPO since Transmeta (TMTA to double its offer price in its first day of trade.Tony Lau, analyst at Kim Eng Securities, said that the pricing of China Life was within expectations and expects the company's stock to push past HK$4 per share on its Hong Kong market debut on December 18.
It's also coming at a time when global investors are devouring Chinese stocks, hoping that this will be a way to tap into the mainland's booming economy.
China's economy is expected to grow over 8 percent this year after posting a 9.1 percent leap in gross domestic product in the third quarter.