State-owned train maker China CNR Corp. Ltd. (601299.CN) has reduced the target for its Hong Kong initial public offering by about a fifth to US$1.2 billion, the Wall Street Journal reported Thursday, citing an IPO guidance to investors.
The company was reducing the price range even though almost a 10th of the deal has been sold to cornerstone investors, the newspaper said.
CNR was seeking to sell 1.82 billion shares to raise up to US$1.5 billion, but its bankers now expect the offering to be priced in a range of HK$5.17 to HK$5.20, compared with the earlier range of HK$5 to HK$6.20, the report said, citing sources.
Among its cornerstone investors, Dongfeng Motor Corp. and China National Machinery Industry Corp. have pledged US$70 million, while CNR supplier Jinxi Axle bought US$30 million worth of shares.
A series of pulled deals has hit the city’s IPO market recently. Billionaire Li Ka-shing’s retail arm A.S. Watson Co. opted to sell a minority stake to Singapore state investment firm Temasek Holdings Pte. rather than list in the city and London as planned. Hong Kong also lost Alibaba Group’s planned IPO, considered as one of the biggest in the world in years, after the technology giant decided to list in the United States instead.
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