Mainland miner's issue sees lukewarm launch despite lower margin financing
Enthusiasm among retail investors for China Shenhua Energy's US$3.6 billion share offering was low yesterday, despite cut-rate margin financing offers from some brokers.
In the first half hour of the retail subscription's opening, at one Kwun Tong branch of HSBC only about 30 people reportedly asked for application forms. Shenhua is said to have prepared 1.4 million forms for retail investors.
A broker at Sun Hung Kai Financial said there were 'very limited' inquiries from walk-in customers, with interest mostly coming from long-term clients.
As the mainland's largest coal producer, Shenhua is offering 5 per cent of 3.06 billion shares for sale to retail investors, with the rest earmarked for institutional investors in a global offering that ends on Tuesday.
Brokers and banks declared sharply higher margin finance charges compared with previous large stock offerings. Sun Hung Kai led the pack with a rate of 5.75 per cent.
