China's First Tractor Co has fixed its issue price at the top of the proposed range at $4.50 a share, underscoring strong interest in the country's first agricultural-related stock available for foreign investment.
The H-share firm, which opens its Hong Kong public offering tomorrow, raised its proposed issue price twice last week after healthy response to the international placement, which ended last Friday more than 20 times subscribed.
The issue price puts the shares on a multiple slightly above 13 times this year's prospective earnings on a pro forma fully diluted basis.
Prudential Portfolio Asset Managers Asia investment manager Haddon Zia said: 'The market is crazy. New issues are hot and this is the first agricultural-related concept stock.' He said the stock was not a bargain.
First Tractor will sell 300 million H shares, or 40 per cent of its enlarged share capital. Of the issue, 15 per cent will be offered to the public, with the remainder placed with institutional investors.
Trading in the shares will begin on June 23.
