Chinese lender Zhongyuan Bank gains 2 pct in Hong Kong debut (updated)

Zhongyuan Bank

19/07/2017 03:02

* Shares climb as high as HK$2.52 vs HK$2.45 IPO price 
    * Retail demand accounted for 0.4 times shares on offer 
 
 (Adds investors' demand for IPO, fees) 
    HONG KONG, July 19 (Reuters) - Shares in Zhongyuan Bank Co 
Ltd, the largest city commercial bank in central China's Henan 
province, rose 2 percent in their trading debut on Wednesday 
despite weak demand from retail investors for the lender's $1 
billion initial public offering. 
    The stock  1216.HK  climbed to HK$2.50 in early morning and 
traded as high as HK$2.52, compared with the HK$2.45 IPO price. 
The benchmark Hang Seng index  .HSI  gained 0.3 percent. 
    Zhongyuan Bank priced the 3.3 billion shares on offer near 
the bottom of the IPO's marketing range of HK$2.42 to HK$2.53 
per share. The bank issued 3 billion new shares, with the 
remainder coming from 62 state-owned existing shareholders on 
behalf of China's National Council for Social Security Fund. 
    Demand from retail investors - who have a significant 
influence over first-day trading in Hong Kong share offerings - 
accounted for 0.4 times the number of shares on offer in the 
deal, the lender said in a securities filing on Tuesday, 
underscoring weak appetite from mom and pop buyers in the city. 
The institutional tranche was "moderately" oversubscribed. 
    CCB International, CITIC, CLSA, CMB International and JP 
Morgan acted as joint sponsors of the IPO, with BoCom 
International, Central China International Capital, First 
Capital Securities, GF Securities, Haitong International and 
SPDB International also acting as joint bookrunners. 
    The banks stand to jointly earn up to $23.3 million in fees, 
equivalent to a 1 percent underwriting commission, a 0.8 percent 
incentive fee and a 0.43 percent discretionary fee, according to 
the IPO prospectus. 
 
 (Reporting by Elzio Barreto and Julie Zhu; Editing by Stephen 
Coates) 
 ((elzio.barreto@thomsonreuters.com;)(852)(2843-1608; Reuters 
Messaging: elzio.barreto.thomsonreuters.com@reuters.net)) 
 
Keywords: ZY BANK LISTING/