Zhengzhou Coal tumbles in HK debut after $300 mln listing
HONG KONG |
HONG KONG Dec 5 (Reuters) - Shares in Zhengzhou Coal Mining Machinery Group Co Ltd tumbled as much as 8.5 percent in their Hong Kong debut on Wednesday, after underwriters of the $300 million offering were left holding 12 percent of unsold stock due to poor demand.
Zhengzhou Coal, which is already listed in Shanghai , had priced the 221.1 million shares at HK$10.38 each last week, at the bottom of its indicative range of HK$10.38 to HK$12.28.
As of 0135 GMT, the stock was trading at HK$9.59 after falling as low as $HK9.50. The benchmark Hang Seng index firmed 0.1 percent.
The company said in a securities filing on Tuesday demand from institutional and retail investors fell short of the number of shares offered in the deal, prompting three of the four underwriters to buy about $37.2 million worth of unsold shares.
Citic Securities Corporate Finance bought 22.4 million shares, while Deutsche Bank took up 710,000 shares and UBS AG another 4.65 million shares.
The shares "are not subject to lock-up and they may consider disposing of such shares after listing as they deem appropriate," Zhengzhou said about the stock bought by the three underwriters.
JPMorgan was also an underwriter on the offering.
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