Chinese waste-paper management services provider and recycled paper products producer Fook Woo Group Holdings Ltd. has raised US$183 million by pricing its Hong Kong initial public offering at the top end of its indicative price range, a person familiar with the situation said Thursday.
Benefiting from investor appetite for "the green concept", Fook Woo sold 620 million shares at HK$2.30 in a HK$1.68-HK$2.30 range, as the institutional book was multiple times covered and the retail portion was 470 times subscribed, the person said.
The institutional tranche originally accounted for 90% of the deal, but due to heated response among retail investors, the tranche will be trimmed to 50% to give more shares to retail investors.
Fook Woo still has an option of increasing the deal size by 15% to raise a maximum US$212 million.
Fook Woo is scheduled to list on the Hong Kong bourse Wednesday.
Royal Bank of Scotland PLC (RBS: 13.63, 0.37, 2.79%) and UBS AG (UBS: 15.5, 0.35, 2.31%) are joint bookrunners of the deal.
Fook Woo's pricing is in contrast to other deals in the market, such as sofa manufacturer and retail Man Wah Holdings Ltd. which earlier Thursday cut the size of its IPO to US$242 million from US$503 million amid worries from investors that the global consumer market had yet to recover from the financial crisis.