China Railway Signal & Communication Corp. raised US$1.42 billion after pricing its Hong Kong initial public offering at the bottom of an indicative price range, The Wall Street Journal reported.
The world’s largest maker of train traffic control systems sold 1.75 billion new shares at HK$6.30 (81 US cents) each, the newspaper said, citing an unnamed source.
It is Hong Kong’s fourth-biggest IPO this year.
The state-owned firm had secured cornerstone investors for more than half the IPO shares before taking orders from other investors.
Cornerstone investors, who usually commit to hold the stock for months after a company’s listing, help boost other investors’ confidence in the company.
However, the appetite of investors for Chinese IPOs has been hit by the country’s stock market slump, causing the firm to price its IPO at the bottom of its HK$6.30-8 range, the report said.
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