Haitong Securities Co. (600837) will try to set a price today for a $1.7 billion share sale in Hong Kong after failing to complete the offering last week, said two people with knowledge of the matter.
Haitong Securities, China’s third-biggest brokerage by market value, delayed price-setting negotiations on Dec. 9 after the Shanghai-listed company resisted selling stock at the low end of a marketed range, said the people, who asked not to be identified because the process is private. Haitong Securities may raise $1.5 billion to $1.7 billion through the offering.
The company’s struggles to woo investors reflect stock market volatility that forced Chow Tai Fook Jewellery Group Ltd. and New China Life Insurance Co. to sell a combined $3.3 billion of first-time shares in Hong Kong at or near the low end of price ranges last week. The city’s Hang Seng Index (HSI) fell 2.7 percent on Dec. 9, the biggest drop in a month.
Haitong Securities, based in Shanghai, has until Dec. 13 to set a price or the share sale “will lapse,” according to the offering prospectus. The company is offering 1.23 billion shares at HK$9.38 ($1.21) to HK$10.58 each and plans to start trading in Hong Kong on Dec. 15, the document shows.
Shares in Haitong Securities fell 1.6 percent to 8.18 yuan ($1.29) at 10:08 a.m. in Shanghai today, giving the brokerage a market value of 67.3 billion yuan.
Haitong Securities’s Hong Kong investment banking unit, JPMorgan Chase & Co., Credit Suisse Group AG, Deutsche Bank AG and Citigroup Inc. are managing the offering. Officials at the company’s Shanghai headquarters weren’t immediately available to comment on the share sale.
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