Only moderate demand for Sun Hung Kai Properties' share placement has prompted bookrunner Citigroup to relinquish some of its fee after the deal was priced at $88.30 - slightly lower than $89 the company had set. The year's largest share placement yesterday closed with the price fixed at the bottom of the offer range of $88.30 to $90.10, according to a term sheet sent to fund managers. This is 70 cents below the developer's minimum placing price, based on the company announcement. The difference is underwritten by Citigroup. The difference in aggregate amounted to $62.3 million, which represented a large proportion of the estimated $80 million placing fee that Citigroup receives. Fund managers said the mixed market view of the developer had undermined the bookrunner's task of pricing the deal at a level the developer could accept. 'Such an exercise is likely to depress the short-term performance, especially after the counter surged so quickly in the past month,' said a fund manager who had not bought the shares. 'I believe I may buy cheaper in the market.' SHKP fell 5.05 per cent yesterday from its record high of $92.90 on Monday. The counter at one stage dropped to $87.90 shortly after the market opened, but soon rebounded to trade most of the day around the offer price of $88.30. The counter closed at $88.20 with $1.73 billion worth of shares changing hands. SHKP had surged 13.7 per cent in the month before the share placement and has gained 16.82 per cent so far this year. Standard & Poor's Ratings Services viewed the recent share placement as positive and said it would not affect SHKP's corporate rating. The share placement will lower the company's leverage and help to fund its expansion plans. The developer has successfully raised $7.92 billion from the share placement. It intended to use the net proceeds of $7.83 billion for its core property development and investment activities, particularly in the mainland, the firm said. The shares have a lock-up period of three months on the company and the Kwok family. Citigroup is the sole bookrunner of the placement.