Powerlong Trims Hong Kong IPO on Weak Demand

"Powerlong Trims Hong Kong IPO on Weak Demand | AboutHK.Com - More Information About HK"

Powerlong Real Estate Holdings Ltd. said it has cut the size of its initial public offering by about 44% because of volatility in the Hong Kong capital market for new listings and undersubscription of the retail tranche. The property company cut the value of the IPO to US$353 million from US$628 million. Powerlong also said it will postpone listing on the Hong Kong stock exchange to Oct. 14 from Friday. Fujian-based Powerlong sells residential properties and leases commercial properties for long-term investment in second- or third-tier cities in Fujian, Jiangsu, Shandong, Henan and Anhui provinces. The company said it will sell one billion shares at 2.75 Hong Kong dollars (35.5 U.S. cents) each, below the indicative price range it previously sought of HK$3.30-HK$4.90 a share. The IPO's retail portion, accounting for 10% of the deal, was undersubscribed by 22%. Retail investors have until Thursday to decide whether to proceed with the subscription, the company said. —Amy Or Printed in The Wall Street Journal, page M2