China Communications Construction sees strong demand Port builder China Communications Construction, which aims to raise up to HK$16.1 billion in an initial public offering, has had its institutional tranche more than 20 times oversubscribed, people close to the deal said. 'Excluding the US$240 million worth of shares set aside for cornerstone investors China Life Insurance Group, New World Development chairman Cheng Yu-tung and Singapore's GIC Direct Investment, the oversubscription number will get even bigger,' a source said. China Communications Construction, the largest IPO in terms of fund-raising size in a wave of new listings, will take orders from Hong Kong individual investors from today until Wednesday. The company is selling 3.5 billion shares at HK$3.40 to HK$4.60 each, representing 17.5 to 23.7 times its forecast earnings for this year. Five per cent of the shares will be set aside for retail subscription. China Communications Construction is coming to market in the wake of other hot offerings. Telecommunications service provider China Communications Services Corp (China Comservice) and bathroom electrical appliances maker Aupu Group Holding, which closed their retail subscriptions yesterday, received strong demand from Hong Kong punters. China Comservice's retail portion was at least 50 times oversubscribed and was likely to reach 100 times, sources said. Aupu's retail portion was about 98 times oversubscribed, and its institutional tranche about 40 times oversubscribed. China Comservice is selling 1.29 billion shares at a price range of HK$1.70 to HK$2.20 each. Aupu aims to raise up to HK$251 million by selling 204 million shares at 93 HK cents to HK$1.23 a share. Other IPOs are also attracting strong interest. Four brokerages - Phillip Securities, KGI (Asia), Sun Hung Kai Securities and Prudential Brokerage - have received a combined HK$9.6 billion worth of margin orders for Shanghai Jin Jiang International Hotels (Group), or 38 times the shares available in the retail tranche, on the first day of subscription. Haitian International, the mainland's largest plastic injection moulding machinery maker, yesterday won Hong Kong exchange approval for a US$150 million initial public offering, sources said.