WITH overwhelming demand for shares in Tingyi (Cayman Islands) Holding Corp, the noodle-maker has set its issue price at $1.68 - near the high planned for the initial public offering. Sponsor Deutsche Morgan Grenfell said the initial sale of 811.08 million shares, welcomed by international fund managers and domestic private investors, was more than 15 times subscribed. 'Institutional demand for the placement is far more overwhelming than the public offering,' an analyst said. The new offering is based on placings in Hong Kong and overseas. The Hong Kong offering of 121.66 million shares, out of the 811.08 million shares, was 3.18 times subscribed. In view of this, shares offered will be adjusted to 25 per cent of the total offering, to 220.27 million shares. The offer price was set between $1.40 and $1.70. 'The share price is reasonable amid improved sentiment in the stock market,' Patrick Chia, research manager at Cheerful Securities, said. Tingyi's share price was set on a book-building basis, a method Ng Fung Hong used in October last year which resulted in the general livestock importer's shares being oversubscribed 110 times. Tingyi's prospective price-earnings multiple is projected at 12.42 times 1995 earnings. Meanwhile, the public share offering of China's Jingwei Textile Machinery Co was 2.42 times subscribed. Being the first H-share offering this year, Jingwei's subscription result is closely monitored by investment bankers as a guide to investor appetite for Chinese shares. Analysts said Jingwei's low price-earnings multiple of about six times this year's earnings, coupled with the recovery of the Hong Kong stock market, bolstered investors' interest. When Guangdong Fotao shelved its flotation in November last year, market sentiment towards H shares fell to a low. There were fears that preferential policies enjoyed by mainland enterprises in China would gradually be eliminated, thereby putting them under fierce market competition. Forthcoming H-share offerings include Panda Electronics, Guangzhou-Shenzhen Railway and Guangdong Kelon Electrical Holding. Jingwei issued 160 million shares for the flotation. Only 40 million shares were available in the public offering while the remaining 120 million shares were for a private placement. In view of the subscription result, Jingwei will allocate four million shares from the placement portion for the public offering. In addition, sponsor Peregrine Capital will require the company to issue an extra 5.72 million shares to cover the oversubscription. Jingwei's shares will begin trading on the exchange on Friday.