Mainland-backed Brilliance China Automotive Holding is putting on a brave face despite a poor response to its equity offering in Hong Kong.
The underwriters managed to sell only 6.4 per cent of 2.175 million shares in the company's Hong Kong tranche.
The company and its lead underwriter, CLSA Global Emerging Markets blamed adverse market conditions for the selling of only 87.4 per cent of a total offering aimed at raising $642.27 million before expenses.
According to the underwriting agreement, a syndicate led by CLSA will have to fork out about $80.93 million to take up the unsold shares.
Yang Rong, chairman of the New York-listed Brilliance China Automotive, said the subscription level achieved was satisfactory, given the prevailing market conditions.
The underwriters sold 96.4 per cent of 19.575 million shares for international placement at $29.53 per share.
