Tycoons and international funds have joined a frenzied chase for shares of China Minsheng Banking Corporation and Sands China, both of whom kicked off their roadshows yesterday.Minsheng was three times covered as of last night, locking in US$10.6 billion (HK$82.68 billion), sources said.
One British and three Middle Eastern funds are seeking to be anchor shareholders, applying for more than US$2 billion worth of shares in total. Four cornerstone investors are seeking US$340 million worth of shares.
China Investment Corp and China Life (2628) will subscribe through the international tranche as Minsheng moves to become Hong Kong's biggest initial public offering this year.
Glorious Sun (0393) chairman Charles Yeung, a cornerstone investor, said he would hold Minsheng as a long- term investment.
Starlight International (0485) chairman Philip Lau said he plans to invest up to US$1 billion.
Minsheng aims to raise HK$31.5 billion after which its capital adequacy ratio will rise above 11 percent from 8.5 percent, sources said. UBS is the sole global coordinator of the deal.
Sands China, the Macau unit of billionaire Sheldon Adelson's casino company, is seeking up to HK$26 billion.
The global offering consists of 1.87 billion shares - 10 percent or 187 million shares are for Hong Kong while the overseas tranche consists of 1.68 billion shares, including 1.08 billion new issues.
The indicative price range is between HK$10.38 and HK$13.88 per share.
Goldman
Sachs and Citi are the joint global coordinators of the Sands deal. "Its business is diversified " an analyst said. "For an investment portfolio, it is not lopsided, and hence risks are dispersed."New World Development (0017) chairman Cheng Yu-tung said he will buy a stake. Four other firms are planning to take advantage of the revived confidence in IPOs and launch bids.
Shenzhen-based property developer Fantasia Holdings intends to raise up to HK$3.2 billion by offering 1.46 billion shares between HK$1.75 and HK$2.20.
Resourcehouse Mining Group, controlled by Australian billionaire Clive Palmer, may raise as much as HK$2.34 billion by selling 3.05 billion shares.
Sany Heavy Equipment is targeting up to HK$2.4 billion from selling 500 million new shares at between HK$4.10 and HK$4.80 each.
And China Longyuan Power Group Corp, Asia's largest wind power generator, has nearly doubled its IPO target to about US$1.3 billion. It started pre- marketing on Monday and plans to sell 2.1 billion shares.
