Scud, Ming An and Haitian suffer as earlier offerings drain investor funds Hong Kong's three latest initial public offerings - Scud Group, Ming An (Holdings) and Haitian International Holdings - attracted limited demand from retail investors placing margin orders after they committed their funds to subscribe to earlier share sales, brokers said. Five brokerages polled by the South China Morning Post received margin orders worth a combined HK$2.28 billion for mobile-telephone battery maker Scud, HK$10.6 billion for Hong Kong non-life insurer Ming An and HK$4.9 billion for Haitian, the largest producer of plastic injection moulding machines in the mainland. The amount of margin orders received yesterday, the last day for accepting margin orders, barely increased from Tuesday, the brokers said. The competition among the eight companies with share offers had left some of them scrambling for retail investors' limited funds, said Horace Kwan Pak-leung, a director at Cash Financial Group. Retail investors did not have much unused money to buy the latest three IPOs, he said. Prudential Brokerage associate director Kingston Lin said five earlier share offerings, seen as better quality than the Scud, Ming An and Haitian offerings, had absorbed most of the funds of retail investors. Xingda International Holdings, Zhuzhou CSR Times Electric, 3Cems Corp and Sunlight Real Estate Investment Trust began their public offerings one day earlier than the latest three IPOs, and China Coal Energy three days earlier. China Coal, the mainland's second-largest coal miner, has priced its shares at HK$4.05 each, the top of an indicative range, raising HK$1.31 billion. Its retail portion was 170 times oversubscribed and the institutional tranche 50 times, market sources said. The institutional tranche of Sunlight Reit was six times covered. Sunlight, which may raise as much as HK$2.73 billion, would price its units at the top end of the indicative range, a source familiar with the deal said. Zhuzhou CSR, one of the country's largest providers of electrical systems for powering trains, drew orders for fewer than 100 times the shares available for retail investors but was warmly received by institutional investors, sources said. The mainland firm plans to raise up to HK$1.91 billion to fund expansion. Zhaojin Mining Industry, a mainland gold miner that completed its sale last Friday, has boosted the size of its offering by 15 per cent to HK$2.77 billion after exercising a greenshoe allotment to meet demand. Of the most recent share offerings, Haitian, seeking to raise HK$1.26 billion, was six times oversubscribed by institutional investors, sources close to the deal said. The company will stop taking orders today. Ming An, aiming to raise US$169 million, also closes its books today. Fujian-based Scud, which is seeking to raise as much as HK$525 million, stops taking non-margin subscription orders today. 3Cems, a printed circuit board manufacturer, plans to raise up to HK$427.3 million. Xingda, the mainland's largest maker of radial tyre cords, closed its books yesterday as it targets raising about HK$1.2 billion. Brokers said the reduced enthusiasm for new share offerings was unrelated to yesterday's market retreat, when the Hang Seng Index dropped 188.98 points or 1 per cent to close at 18,718.19.