Chinese bad debt manager Cinda set to open up 23 pct in debut
HONG KONG Dec 12 (Reuters) - China Cinda Asset Management Co Ltd is set to rise 23 percent in its Hong Kong trading debut on Thursday, after raising $2.5 billion in the biggest initial public offering for the Asia-Pacific region this year.
Shares in the distressed debt manager were indicated to open at HK$4.40, compared with an IPO price of HK$3.58, according to Hong Kong stock exchange data. That compares with a jump of more than 17 percent in gray market trading on Wednesday.
Investors are betting that soured loans will be a growth business as China's economy slows.
One of four asset management companies that Beijing established in 1999 to absorb toxic assets held by the China's four biggest banks, Cinda is the most profitable and the first to seek a listing.
By comparison, the benchmark Hong Kong share index was indicated to start 0.3 percent lower. The deal was marketed in a range of HK$3.00-HK$3.58 per share.
Cinda's IPO was swamped by orders from small investors, with the retail portion generating more than 161 times demand than the shares on offer, a company filing showed on Wednesday. The institutional tranche of the IPO was "significantly oversubscribed", the statement added. (Reporting by Elzio Barreto and Denny Thomas; Editing by Edwina Gibbs)
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