STRONG indications are emerging that the Tianjin Bohai Chemical Industry Co H-share offer was pushed past the finishing post with the help of co-underwriters.
Highly-placed sources close to the underwriters confirm that mainland authorities sought help to get the issue away and without some underwriters stepping in the offer would have been undersubscribed.
In this investment climate, it is not a complete surprise that an H share might feel the cold shoulder of an investor. Merchant bankers were admitting as much earlier this week. The time had come, they said, for a reassessment of China's overseas listings.
From now on, people are going to be more selective about what they buy and the price they are willing to pay, and no company knows that better than Tianjin Bohai.
But although the chemical group may be chastened by its experience at the hands of investors, those very investors have a right to know exactly what happened. The golden rule of stock markets is that all information must be disseminated evenly and without prejudice. It creates a level playing field for all investors.
If a company withholds information which could materially affect the price of its shares, and is not breaching listing requirements by doing so, it would appear the playing field has been altered significantly.
A handful of people are well aware of the exact situation at Tianjin concerning the subscription for shares, and that information should be made public.