The move by the firm to revise its offer comes after chipmaker CSMC cancels its plans After a week's delay, the initial public offering of Pacific Basin Shipping is back on track with an improved offer, according to market sources. The dry bulk shipping firm, which had been hoping to raise up to US$200 million, is now offering 437 million shares at between HK$2.20 and $2.90, the sources said. This will give it a maximum HK$1.26 billion, or US$162 million, excluding a 14 per cent greenshoe. Pasific Basin has also revised its dividend payout policy to make the shares even more attractive to investors before the July 14 listing, and will distribute 50 per cent of its profits to investors, the sources said. According to a report by sole underwriter Goldman Sachs, the original ratio was 30 per cent. The revision comes after chipmaker CSMC Technologies Corp cancelled its IPO over the weekend, indicating insufficient demand. China Shipping Container Lines also saw only lukewarm response from institutional investors and four days after listing, its shares are 16.5 per cent below the offer price. However, recent listings by China Mengniu Dairy, Tencent Holdings and mainland sports goods retailer Li Ning Company all proved successful. According to market sources, Li Ning's international placing was 13 times subscribed while the Hong Kong public offer was 130 times covered. This triggered a clawback which will increase the Hong Kong tranche to 50 per cent of the offer. The price was fixed at HK$2.15 per share - the upper end of the indicative range of $1.76 to $2.23 - allowing the company to raise about $530 million, sources said. The pricing represented 18.3 times this year earnings on a fully diluted basis, they added. The stock is expected to start trading on the main board next Monday. While investors are generally more inclined to buy consumer-products companies and shy away from cyclical stocks amid the uncertainty over rising interest rates, analysts stressed that pricing would be key to getting forthcoming issues started. 'Most companies will accept a lower price if it allows them to go ahead, and then come back for a second fund raising later on,' said Alex Wong, research manager at Rexcapital Asset Management. Meanwhile, both the international and retail offers by mainland media services firm Qin Jia Yuan Media were also 'very well covered', according to sources. Menswear group Goldlion Holdings, controlled by Tsang Hin-chi, had applied for shares through the public offer which runs until Thursday, they said. The placing tranche was closed last week and one source said shares to key business figures, including Stanley Ho Hung-sun, Li Ka-shing, Lee Shau-kee, and Chen Hsong Holdings' Chiang Chen, represented about 50 to 60 per cent of the tranche. Qin Jia Yuan plans to raise up to HK$148 million with the shares debuting on the main board next Wednesday. Separately, data from the Hong Kong Exchanges and Clearing yesterday showed BNP Paribas, the parent of CSCL's listing sponsor BNP Paribas Peregrine, was holding 41 per cent of CSCL's H shares. However, a market source said BNP had bought only 317 million shares, or about 13 per cent of the issued H shares, in the market at an average price of $3.145 when CSCL debuted last Wednesday. The remaining 28 per cent was a double-counting of the 13 per cent and the 15 per cent greenshoe option it was granted as underwriter.