Yesterday's market slump failed to discourage brokers and banks from launching their competitive margin financing packages for listing hopeful Golden Eagle Retail Group, which is expected to excite retail investors on the back of its mainland consumer play concept.
Several brokers and banks announced their margin financing plans yesterday, with Hang Seng Bank offering the lowest rate.
While brokers including Tai Fook Securities and Phillip Securities are offering 5.37 per cent to 5.5 per cent margin rates, Hang Seng Bank offers a $528 all-in-one package for customers who borrow $570,000, which translates to a 4.83 per cent effective margin rate.
Phillip Securities received $170 million worth of margin financing orders and China Everbright Securities got $100 million.
Sources said the institutional tranche of the department store operator was fully covered.
Golden Eagle is tapping the market for up to $1.41 billion by offering 450 million shares at a price range of $2.50 to $3.15 each, which translates to 20.8 to 26.21 times forecast earnings.