Sinopec Engineering gains 1.9 pct in debut after $1.8 bln HK IPO
HONG KONG May 23 (Reuters) - Sinopec Engineering (Group) Co Ltd gained 1.9 percent in its stock market debut on Thursday after raising $1.8 billion in a Hong Kong IPO last week, amid signs that investors remain cautious about new listings.
The rise follows a bigger 6 percent first-day rise for China Galaxy Securities Co Ltd on Wednesday. The debuts were being watched ahead of other planned listings in the city, after a slump in initial public offering issuance in the first quarter.
Retail investors' demand for both deals was nearly 30 times the number of shares on offer. The two IPOs were priced near the bottom of expectations, stoking appetite from bargain-hunting investors.
The two deals would boost Hong Kong IPO volumes to $3.9 billion by late May, catapulting the island city to third place among global exchanges, behind New York's $12.6 billion and Sao Paulo Bovespa's $6.5 billion, according to Thomson Reuters data.
Also this week, Langham Hospitality Investments, an investment trust that owns three upscale Hong Kong hotels, will price its up to $590 million IPO later on Thursday and autoparts maker Mando China Holdings Ltd. will set the final price for its up to $270 million listing on Friday.
Sinopec Engineering shares opened at HK$10.70 compared with the IPO price of HK$10.50 per share. The benchmark Hang Seng index was down 0.8 percent by 0125 GMT.
The IPO was priced near the bottom of an indicative range of HK$9.80-HK$13.10 per share last week.
Sinopec Engineering secured commitments for $350 million worth of shares from seven investors including logistics and transportation company China Shipping (Hong Kong) Holdings and units of China Aerospace Science and Technology Corp.
Sinopec Engineering is controlled by China Petrochemical Corp, the state-owned integrated oil behemoth also known as Sinopec Group that is also the parent of China Petroleum and Chemical Corp .
Hong Kong, the top global IPO destination for two years straight in 2009 and 2010, had lingered in 13th place in global rankings behind countries like Iraq and New Zealand, before the offerings by China Galaxy and Sinopec Engineering.
Citic Securities , JPMorgan and UBS were hired as sponsors of the Sinopec Engineering offering, with Goldman Sachs also acting as a joint global coordinator on the deal. A group of nine other banks will also help manage the IPO as joint bookrunners. (Reporting by Elzio Barreto; Editing by Denny Thomas and Chris Gallagher)