THE response to Samson Paper Holdings' new share offer has been flat under lacklustre market sentiment. The paper distributor yesterday reported an oversubscription of 1.1 times in its initial public offering of 100 million new shares. 'Given the unfavourable market conditions during the period the shares were offered, we are satisfied with the subscription level,' company chairman Sham Kit-ying said. The current market climate has not been advantageous for new listings. On Monday, woodwork importer Pacific Plywood Holdings had a wobbly start in its trading debut. Its share price fell 10.3 per cent before rebounding to close at its issue price of $1.16. Samson shares were issued at $1.28 each to raise $128 million to expand operational facilities in Hong Kong and China. Samson's sales network is to expand in China, where high growth for imported paper products is expected. Most of the capital raised will be used to build a paper-processing joint venture in China and for other expansion projects in the country. The rest of the proceeds will be used to buy new warehouse and office premises in Hong Kong and to repay debt. Prospective price-earnings multiple for the share in the year to March 31 is set at 5.7 times based on forecast net profits of not less than $84 million. Fully diluted earnings per share are projected at 22.3 cents. A final dividend of 6.4 cents a share has been forecast. Shares begin trading on December 1.