China’s Horizon Construction set to price shares at bottom of IPO range

Shanghai-based Horizon Construction Development Ltd plans to price its IPO shares at the bottom of their marketed range, according to two sources with direct knowledge of the matter.

The provider of construction services will raise HK$1.65 billion ($210.2 million), pricing the offering at HK$4.52 per share. The company had sought as much to HK$4.80 per share when the deal launched last week.

The sources declined to be identified as the information has yet to be made public. Horizon declined to comment.

Horizon sold 364.6 million shares in the IPO and the price gives the company a market capitalisation of HK$14.5 billion ($1.8 billion).

Horizon is being spun off from financial services provider Far East Horizon Ltd which will retain a 71.7% stake.

About $1.5 billion has been raised from IPOs in Hong Kong so far this year, marginally above the $1.2 billion raised in the same period last year, according to Refinitiv data.

The biggest deal was liquor maker ZJLD Group which raised $675.2 million in its IPO last month, but its shares have since lost 20% of their value.

Reuters

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