Jinmao prices business trust at the bottom

By Rashmi Kumar
26 Jun 2014

Jinmao Investments and Jinmao (China) Investment Holdings, a business trust carved out of Franshion Properties, raised HK$3.21bn ($414m) on June 25 by pricing its IPO at the bottom of its indicative price range. A weak real estate sector led to the low pricing, but bankers are viewing it as a successful transaction.

A total of 600m share stapled units were offered to investors at guidance of HK$5.35-HK$5.65. Final pricing came at the bottom of that range, which led to a yield of 9%.

“Everybody is looking for the best deal in the market, but yield stocks are not at their ...

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