HONG KONG Dec 5 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
JPMorgan was also an underwriter on the offering.