August 12, 2014 / 2:25 AM / 3 years ago

KKR-backed Rundong Auto drops as much as 16 pct in HK debut

HONG KONG, Aug 12 (Reuters) - Luxury automobile dealer China Rundong Auto Group Ltd, backed by private equity firm KKR & Co LP, fell as much as 16 percent in its Hong Kong trading debut on Tuesday.

The shares dropped as low as HK$3.01 in early morning before bouncing back to trade at HK$3.14 at 0218 GMT. The initial public offering was priced at the bottom end of a HK$3.58 to HK$3.98 range.

The retail portion of the IPO drew tepid demand from investors, with only 0.32 times the total number of shares on offer, the company said in a filing on Monday. The institutional tranche of the IPO was “moderately oversubscribed.”

Rundong offered 244.97 million new shares, while shareholder Runda PTC Ltd offered 23.65 million existing shares.

Reporting by Elzio Barreto; Editing by Ryan Woo

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