Haitong Securities Said Set to Raise $1.7 Billion in Share Sale
Nelson Ching/Bloomberg
Employees work inside a branch of Haitong Securities Co. in Beijing, China.
Employees work inside a branch of Haitong Securities Co. in Beijing, China. Photographer: Nelson Ching/Bloomberg
Haitong Securities Co. (600837) is poised to
raise HK$13 billion ($1.7 billion) in Hong Kong’s biggest first-
time stock sale since December, said two people with knowledge
of the matter.
The company, already listed in Shanghai, will sell about
1.23 billion shares at HK$10.60 apiece, near the bottom of a
range marketed to investors, said the people, who declined to be
identified because the information is private. The shares were
originally offered at HK$10.48 to HK$11.18 each, according to
the prospectus for the offering.
Haitong’s share sale is about 40 percent bigger than the
total amount raised in first-time offerings in Hong Kong in the
first quarter, data compiled by Bloomberg show. Initial share
sales in the city are off to their slowest start to a year since
2009, with investors steering clear of new equity even after the
benchmark stock index advanced 14 percent.
The price implies a discount of 15 percent to Haitong’s
closing price of 10.09 yuan ($1.60) yesterday in Shanghai.
Chow Tai Fook Jewellery Group Ltd. (1929), the world’s biggest
listed jewelry chain, raised about $2 billion in a Hong Kong
initial sale in December. The company’s stock has fallen 21
percent from the offer price.
To contact the reporter on this story:
Fox Hu in Hong Kong at
fhu7@bloomberg.net
To contact the editor responsible for this story:
Philip Lagerkranser at
lagerkranser@bloomberg.net
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