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Offering by PICC a record for year

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PICC Property & Casualty has wrapped up this year's most oversubscribed initial public offering in money terms by pricing it at the top of an indicative price range of HK$1.80 to raise $5.4 billion - the largest IPO this year.

The retail portion, which closed on Thursday, froze as much as US$10 billion of retail investors' money and attracted subscriptions of about 140 times the number of shares on offer, underwriting sources said yesterday.

Demand for the institutional portion was equally robust, with investors pledging interest of US$10 billion - as yet unpaid - to be part of PICC, they said. That was about 15 times the shares available to institutions.

The high level of retail interest will trigger a clawback from the institutional tranche, giving retail investors 50 per cent of the shares on offer, instead of just 10 per cent initially.

Trading in the company's H shares is expected to begin next Thursday.

Morgan Stanley and China International Capital Corp are co-sponsoring the share offering.

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