With sentiment high for new share issues, the company fails to print enough prospectuses and forms to meet demand Fujian Zijin Mining Industry's much anticipated initial public offering (IPO) got off to an awkward start yesterday as investors scrambled to get hold of listing prospectuses and application forms. The issue's receiving bank, Bank of China, also complained that the H-share candidate's prospectuses arrived 45 minutes after it opened its doors for business at 9am, while the overwhelming response to the offer saw many investors fail to secure an application form. Spurred by the recent success of a string of mainland share offerings in Hong Kong, such as Great Wall Automobile Holding and China Life Insurance, potential investors snapped up 55,000 copies of the prospectus and 1.2 million application forms. This forced the issue's sponsor and global bookrunner, China Everbright Capital, to print a further 95,000 prospectuses and 1.3 million application forms to meet demand. Everbright blamed logistical problems for the delay in delivering the prospectuses to the Bank of China. 'The company and the sponsor would like to express their apology for the inadequate supply of prospectuses at some of the branches of Bank of China,' Everbright and Fujian Zijin said yesterday. 'Should there be further market needs, the printer will continue to increase the printing volume.' Fujian Zijin is offering 348.3 million H shares at between $2.90 and $3.30 per share, of which 10 per cent will be sold through the IPO and the rest through private placing. Despite the warm response for the shares, one broker yesterday warned of investment risks. 'Investors are acting [as though they are] in a trance, drowned by the illusion of quick profits,' Fulbright Securities general manager Francis Lun Sheung-nim said. 'Don't forget Shakespeare's warning in the Merchant of Venice - all that glisters is not gold,' he said, urging investors not to blindly chase after IPOs. Fujian Zijin, the first gold-mining company to be listed in Hong Kong, is seeking to raise up to $1.14 billion from the share offering, which closes to retail investors on Tuesday. The shares will start trading on the main board on December 23. The company relies heavily on its Zijinshan gold mine in Fujian province, its principal asset with an estimated gold reserve of 138.3 tonnes. According to Fujian Zijin's prospectus, the company could make possible provisions on loans granted to a promoter of its subsidiary Hunchun Zijin. Last year, Fujian Zijin undertook to provide an interest-free loan facility of up to 3.5 million yuan to Hunchun Gold and Copper Mining, the promoter. Fujian Zijin said the facility, of which 940,000 yuan had been drawn, was used to settle outstanding payments to employees of the promoter. Repayment of the loan is in the form of dividend payable by Hunchun Zijin to the promoter.