Jolimark Holdings has become the second listing candidate this week to cut the size of its retail offering due to weak demand, highlighting the weak market for new listings.
The office printer maker said 171 retail investors had requested only 6.42 million shares, or just over half of the 12.5 million available.
As a result, only 5.17 per cent of the $142.5 million initial public offering will be allocated to retail investors, with the remainder taken up by institutions. The original institutional tranche - 90 per cent of the offer - had been moderately oversubscribed, the firm said.
During the weekend, China Cosco Holdings was forced to trim its retail tranche to 5 per cent of the $9.53 billion offer, from an original 10 per cent, after the number of applications fell short. The container shipping and terminal operator also priced its offer at the bottom of its indicative price range, at $4.25.
Jolimark, brought to market by Kingsway Financial, offered 125 million shares at $1.14 each, or seven times trailing earnings. The listing proceeds will be used to expand production capacity and strengthen research and development.
Legend Holdings, the parent of Lenovo Group, holds a 2.16 per cent stake in the company following a strategic investment in April.
