Investors will pay $12.88 a unit for the $33.33 billion Tracker Fund, making it the biggest public offering in Asia. The fund's managers announced yesterday that investors would get a 5.25 per cent discount on the reference price of $13.80 a unit. The unit price was determined from the average price of the Hang Seng Index over the past three days of trade. The fund, devised to sell off some of the $200 billion-plus stock portfolio the Government acquired last year in its efforts to fend off hedge fund speculators, was more than three times oversubscribed, mostly because of a surprisingly large interest from ordinary investors. Ordinary investors will share $23.33 billion of the total offer, while institutions will divide up the remaining $10 billion. Mark Machin, a director with Goldman Sachs, one of the offer's joint sponsors, said most retail investors would get all the units they subscribed for, although those who applied for more than 30,000 would get slightly less than their entire application. But institutional demand was approximately $20 billion, meaning fund houses would get about half what they wanted. The Government emphasised when it launched the fund its priority was to meet retail demand. Nonetheless, institutions will be able to increase their holdings when trading in the units, which represent the 33 members of the Hang Seng Index, starts this Friday. Retail investors, who were required to submit cheques based on the $13.80 unit reference price when they applied for their allocation, will now receive refund cheques from Exchange Fund Investment later this week. The level of interest in TraHK has surprised most people including the financial community and even the Government. Acting Financial Secretary Rafael Hui Si-yan said: 'I am very pleased with the high level of support from the local retail, as well as institutional, investors in Hong Kong and also overseas investors for the Tracker Fund of Hong Kong. 'The success of the public offer of TraHK signifies investors' confidence in the prospects for Hong Kong.' Mr Machin said institutional interest in TraHK from the United States was particularly strong. Goldman Sachs, ING Barings and Jardine Fleming, along with Exchange Fund Investment and the fund's manager, State Street Global Advisors, conducted a two-week roadshow to sell it to international investors. Mr Machin said the roadshow had focused attention back on Hong Kong after two years in which there had been an enormous exodus of money. The size of TraHK was evidence that investors had a changed perception of the region, helped also by the recent issue by China Telecom, he added. 'I think it shows the capacity of this market and the amount of capital being attracted here,' said Mr Machin. Jardine Fleming group executive director Patrick Sun Ting-wah, said he was delighted with the response to TraHK, particularly from the public. Although retail investors, lured by the discount price and loyalty bonuses, would hold on to their units on the first day and it was also hoped institutional investors would be long-term holders, market liquidity would not be a problem.