Alsco Pooling Service oversubscribed 622 times in retail tranche

Chinese reusable-packaging service provider Alsco Pooling Service's retail tranche for its Hong Kong initial public offering was 622 times oversubscribed on Monday.

The company has drawn HK$1.77 billion from margin loans, according to data from brokerages.

Alsco Pooling Service plans to offer 20.34 million shares from February 27 to this Wednesday, raising around HK$285 million. The offer price ranges from HK$11 to HK$14, with each lot of 500 shares, and an entry fee of approximately HK$7070.6. 

The company is expected to debut on March 9, with China Securities (International) Finance Holding Company as the sponsor. Its IPO will not introduce cornerstone investors.

It expects to use the net proceeds from the listing in 25 percent to improve and upgrade the numerical system and platform; 25 percent in advance of overseas expansion strategy; 20 percent in expanding the service network nationally; and 20 percent in acquiring the expansion of the group's services to other downstream industries.

Gloria Leung