UNDERWRITERS have been left holding $134 million worth of shares in Sun Hung Kai Hong Kong Industries' new spin-off, SHK Convertibles, after its $200 million public offering was heavily under-subscribed.
Only 1,060 applications were received for 6.6 million of the 20 million shares being made available - just 32.7 per cent of the public offer.
The remaining 13.4 million shares will now have to be taken up by underwriters Sun Hung Kai International, Paribas Capital Markets and principal sub-underwriters Deutsche Bank Capital Markets (Asia) and Oriental Patron Asia.
The shares were priced at $10 each, representing a nine per cent premium to net asset value.
A further 40 million new and existing shares are being placed privately with institutional investors.
The total issue has raised $600 million for SHK Hong Kong Industries, which has retained a 25 per cent stake in SHK Convertibles.
Applicants under the public issue have been told they will receive the number of shares they applied for in full.