The dull response to last week's initial public offering (IPO) by Chaoda Modern Agriculture was mostly because of a lack of understanding about China's agriculture sector and the IPO's moderate size, according to analysts. 'People in the investment field do not have much knowledge about this sector,' said Ambrose Chang Chung-kwong, director at Daiwa International Capital Management. Chaoda on Tuesday said the IPO, which closed on Friday, was over-subscribed 2.4 times, a rate lower than most mainland floats this year. The company is the first China-based agricultural counter to list on Hong Kong Exchanges and Clearing's main board. Mr Chang also said the listing was too close to the holiday season. Traditionally, interest in retail investment in stocks dwindles at year-end. Trading of Chaoda's shares is set to start tomorrow. Another analyst blamed rules requiring retail investors to prepay at the highest subscription price. Chaoda's issue had been priced between HK$1.40 and HK$1.63 a share, but a late agreement between Chaoda and its underwriters fixed the offer at HK$1.52 each. Albert Yau of ICEA Capital, the share issue's sponsor and lead manager, said Chaoda's placement to institutional investors was about five times over-subscribed.