Zijin Mining public offering subscriptions exceed 2 trillion yuan
Zijin Mining Group's A-share offering drew subscriptions of more than 2 trillion yuan (HK$2.23 trillion) from public investors, beating analysts' expectations, a source said.
Investors were betting that the gold miner will trade at a premium on its first trading day.
Based on the preliminary figure, the 980 million shares earmarked for the general public were 287 times oversubscribed.
The 420 million shares offered to institutional investors were 43 times oversubscribed, drawing upfront payments of 127 billion yuan.
'Investors wanted to play it safe because they expected the stock market to decline further,' said GF Securities analyst Huang Yong. 'They believed the IPO provides a relatively safe haven.'
Zijin set the price range for the offer between 6.88 and 7.13 yuan per share. Analysts said the company would set the price at the top end of the range.
The company may raise 9.98 billion yuan if it sells the shares at the upper end of the indicative range.
The China Securities Regulatory Commission has not announced when Zijin's shares will start trading on the Shanghai Stock Exchange.
Mr Huang predicted the shares would trade at more than 11 yuan each, bringing subscribers a premium of more than 50 per cent.
Analysts had expected a lukewarm response to the offering after shares of China Pacific Insurance Group retreated below its offering price late last month.