Renhe Commercial Holdings, the latest candidate to seek a listing on the Hong Kong stock exchange's main board, has proposed to cut its initial public offer price to HK$1.13 per share as it was determined to push through with the share sale despite market volatility, sources said. 'The company's proposal to cut its offer price to HK$1.13 a share from a range of HK$1.40 to HK$1.71 previously needs the approval of the stock exchange and it is due to make an announcement [today],' a source said. Renhe, which had aimed to raise up to HK$5.13 billion from an offering of 3 billion shares, could not price its shares as scheduled on Thursday last week because of its failure to secure enough orders for equities allocated to the institutional and retail tranches of the deal. Based on the lower offer price, the share sale would raise a total of HK$3.39 billion, down almost 34 per cent from the original target. 'Cutting the [offer] price will at least provide it with a possibility of getting more orders to cover its subscriptions,' said a source. Market speculation suggested that Renhe's management had been meeting deal advisers and stock exchange officials over the weekend before deciding on whether to proceed with its share offering. The company, which had planned to start trading its shares tomorrow, would defer its market debut, sources said. 'The company's trading debut is now slated for Wednesday next week,' a source said. 'Investors will be given about three days to consider whether they will hold on to their logged orders, or a refund will be given to them.' However, market observers remained bearish about the company's share sale. 'As long as market conditions remain turbulent, I do not think that Renhe will get enough orders even if it cuts its offering price,' said one banker. 'The market is just too bad for any company to launch an initial public offering. 'I really do not understand why Renhe would stick to its share offering unless it is desperate for money to repay someone.' Despite rebounding 1,515.29 points yesterday, the benchmark Hang Seng Index still has lost 41.35 per cent of its value so far this year. Only 24 initial public offerings have been listed on the main board so far this year compared with about 50 a year earlier, and 13 listing hopefuls have been forced to scrap their share sale plans, according to stock exchange records. Headquartered in Harbin, the capital of Heilongjiang province, Renhe is the mainland's leading developer of underground shopping centres. The company's revenue jumped 125.32 per cent to 366.5 million yuan (HK$416.75 million) by the end of last year, while net profit soared 449.97 per cent to 266.68 million yuan.