Entry of a strategic investor and heavy interest lead to doubling of retail tranche
Shares in China Shipping Container Lines (CSCL) were expected to be priced near the top of the indicated range today, after the retail tranche was 50 times oversubscribed and another significant strategic investor emerged.
Buoyant demand for shares in China's second-largest shipping company, which begin trading on June 16, has prompted a doubling of the retail tranche to 242 million shares, according to sources.
The indicative price range is between HK$3.175 and $4.175 per share.
Retail investors committed about HK$25 billion yesterday to buy more than 50 times the amount of shares available.
A mechanism outlined in the listing documentation will shift shares from the institutional tranche, boosting the retail tranche to 10 per cent of the offer.
A report yesterday said that Seaspan Container Lines, a Canadian shipbroker and financier and part of the Washington Group of Companies, would become a key strategic investor in CSCL.