Shanghai Longcheer Technology, a Chinese electronics manufacturing services provider, launched its Hong Kong share sale on Wednesday, attracting HK$2.6 billion in margin financing orders and oversubscribing its retail tranche by about 15 times.
The company plans to offer about 52.26 million H shares, with 10 percent allocated to a public offering in Hong Kong. The shares are being marketed at a maximum offer price of HK$31 each, aiming to raise up to HK$1.62 billion.
At the top end of the range, the offer price values the H shares at a discount of about 46 percent to the company’s Shenzhen-listed shares. Longcheer’s A shares closed at 51.64 yuan (HK$57.70) on Tuesday, giving the firm a market capitalisation of around 24.3 billion yuan.
Each board lot comprises 100 shares, with the minimum subscription cost estimated at about HK$3,131.
The company is expected to debut on the Hong Kong stock exchange on January 22. Citigroup, Haitong International and Guotai Junan International are acting as joint sponsors.
