The share price is also 43.9 per cent lower than HK$4.90, the top end of the offering's price range.

The firm has been struggling to meet its HK$5 billion funding target and now will have to settle for HK$2.75 billion. Powerlong is offering one billion shares, including 150 million shares covered by the over-allotment option.

New listings have underperformed in recent weeks and China Resources Cement Holdings, due to trade today on the stock exchange, is also not expected to do well.

The shares of the biggest cement producer in the south were trading 10.51 per cent below its offer price of HK$3.90 in the grey market, closing at HK$3.49 yesterday, according to Phillip Securities.

Analysts said firms that were not desperate for capital could delay their listings until market conditions improved so they could raise more money.

Weaker demand from institutional investors is a key concern for forthcoming flotations. Deals last month attracted keen interest from institutional investors such as sovereign wealth funds and private equity funds. But some of that liquidity might now be withdrawn as investors fret over the recovery of the United States economy.

'Many listing candidates wanted to mop up as much of that liquidity while it's still around,' said Mark To, an associate director at Prudential Brokerage. 'But now it seems to have evaporated more quickly than they had previously expected.'

While palm oil producer Wilmar of Singapore has delayed its mainland listing, Hunan-based infant milk producer Ausnutria Dairy Corp, industrial gas supplier Yingde Gases Group and China Vanadium Titano-Magnetite Mining, an iron ore mine operator in Sichuan, have all lowered their offer prices.

Recent offerings Metallurgical Corp of China, China Lilang, Peak Sport Products, China South City Holdings and Glorious Property Holdings all fell below their offer prices on their first day of trading.

Market price

Owing to the weak market, Powerlong has set the price of its shares at, in HK$: $2.75