The initial public offering market has cooled since the Lunar New Year holiday, as the interest in Yorkey Optical International (Cayman) and Modern Beauty Salon Holdings has been lacklustre.
When margin financing subscriptions for both new listings closed yesterday, brokers said investors showed more interest in Yorkey than Modern Beauty.
'We have received applications for $400 million worth of margin financing for Yorkey while there was only $5 million for Modern Beauty,' Phillip Securities said.
Prudential Securities received applications for $100 million worth of margin financing for Yorkey and none for Modern Beauty. In contrast, last month's offering, Lingbao Gold, soaked up $63 billion in cash for its retail tranche.
Investors had become more selective over new offerings, especially with regard to the stock's industrial outlook and the track record of the sponsors, Prudential associate director Kingston Lin said.
'Investors will still go for new subscriptions if they are attractive candidates,' he said.
