Huatai Prices $4.5 Billion Hong Kong Share Sale at Top of Range

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Huatai Securities Co., China’s fourth-biggest listed brokerage by revenue, will raise $4.5 billion from a first-time share sale in Hong Kong.

The Nanjing-based company will sell shares at HK$24.80 each, the top end of a marketed range that started at HK$20.68, according to a statement to Hong Kong Stock Exchange on Friday. The price represents a 38 percent discount to Huatai’s close of 31.73 yuan in Shanghai on Friday.

Huatai joins Chinese brokers in raising funds to expand as a world-beating rally continues in the nation’s stock market. China’s average daily stock turnover surged 51 percent to 1.4 trillion yuan ($226 billion) in April from the previous month, according to data compiled by Bloomberg.

The company has received orders from individual investors for at least 278 times the amount of stock available to them, people with knowledge of the matter said earlier. The figure is the highest subscription ratio among Hong Kong first-time share sales of at least $100 million this year, data compiled by Bloomberg show.

Tech Moguls

IFR reported on Thursday in Hong Kong that Huatai was set to price the share sale at the top of the marketed range, citing unidentified people.

Huatai attracted two Internet entrepreneurs as cornerstone investors for the share sale. Ma Huateng, the billionaire chairman of China’s second-biggest Internet company Tencent Holdings Ltd., agreed to buy $100 million stock, and news portal NetEase Inc. and its founder William Ding committed $200 million.

GF Securities Co., a Guangzhou-based brokerage, has jumped 36 percent in Hong Kong since completing a $4.1 billion share sale last month. Citic Securities, China’s biggest brokerage, as well as Haitong Securities Co. and China Galaxy Securities Co. have announced plans to raise more than $12 billion through Hong Kong share sales later this year, the Bloomberg-compiled data show.

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