At HK$5.35, the mainland developer's stock is priced at the top end but at a 29pc discount to NAV
Shui On Land, a mainland developer controlled by Hong Kong tycoon Vincent Lo Hong-sui, raised HK$6.2 billion in a Hong Kong initial public offering after pricing its shares at the top end of the indicative range but at a valuation below that of its listed rivals, sources close to the deal said.
Riding on buoyant demand from institutional investors, the Shanghai-based developer sold 1.158 billion shares at HK$5.35 each, the top end of a range from HK$4.80, the sources said.
However, the price represents a 29 per cent discount to Shui On's net asset value while its listed peers trade at a discount in the high teens, they said.
'Investors thought it was a good, attractive long-term opportunity and thought the pricing was attractive,' a person familiar with the deal said.
'There was a strong belief in the management and they thought they were going on to do big things.'
