Yangtze Optical Fibre and Cable, a mainland manufacturer of optical fibre, raised HK$ 1.1 billion in its Hong Kong initial public offering, the company announced on Tuesday morning.
Its shares will start trading on Wednesday priced HK$ 7.39 each, at the bottom end of earlier estimates, as the offer attracted a lukewarm reception from an otherwise bullish market for mainland stocks, being only 4.2 times oversubscribed.
Cornerstone investors Dongfeng Asset Management and CSR (Hong Kong), one of the two biggest train-makers in China, both hold 9.85 per cent of the issued shares.
Yangtze said it planned to use the proceeds to expand production capacity and purchase materials. Twenty per cent of the money raised will be used to pay off existing bank loans, it said in a stock exchange announcement.
CICC and Goldman Sachs were the sponsors on the deal.