- Bad-loan manager to sell shares at HK$3.09 each in IPO
- Huarong completing city's biggest listing since stock rout
China Huarong Asset Management Co., the nation’s biggest bad-loan manager, raised $2.3 billion after pricing its Hong Kong initial public offering near the bottom end of a marketed range, people with knowledge of the matter said.
The company priced its sale of 5.77 billion shares at HK$3.09 apiece, the people said, asking not to be identified as the information is private. Huarong had offered the shares at HK$3.03 to HK$3.39 each, according to terms for the deal obtained by Bloomberg earlier.
The bad-loan manager attracted cornerstone investments from a group of mostly state-owned enterprises to help it complete Hong Kong’s biggest IPO since the start of a $5 trillion Chinese stock rout in mid-June. The deal adds to the $23 billion raised through first-time share sales in the city this year, data compiled by Bloomberg show.
Huarong is one of four Chinese companies set up by the government in 1999 to clean up state-owned banks. The bad-loan manager had more than 600 billion yuan ($94.4 billion) of total assets at the end of last year, its website shows.
A Hong Kong-based external spokeswoman for Huarong declined to comment. The Hong Kong Economic Times newspaper reported the pricing earlier Friday, citing an unidentified person.