Footwear and Hats News
- Mainland shoe maker 500 times oversubscribed
Date: 16-May-2007 Sources: (People's Daily)
Belle International, a Chinese mainland footwear maker based in Shenzhen, received an oversubscription of more than 500 times for its retail tranche, freezing a fund of 438 billion HK dollars and breaking the IPO record of ICBC, the largest Chinese commercial bank listing in Hong Kong, according to the IPO sellers Tuesday.
The footwear maker has drawn attention not only from small investors but from some local tycoons such as Lee Shau-kee, chairman of Henderson Land and strategic investors including board members from LVMH group, the world leader of luxury goods.
The market sources said the company will likely price its offering shares at the upper limit of the indicative price range from 5.35 to 6.20 HK dollars per share. The IPO is expected to raise up to 8.655 billion HK dollars.
The heavy retail subscription may trigger a clawback mechanism to raise the proportion of shares allocated for public offering from the original 10 percent to 50 percent.
Shares of Belle are scheduled to begin trading on May 23.
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