Beijing Urban pushes IPO through despite retail no-show

Wuhan Railway_230px
By Rev Hui
03 Jul 2014

China’s Beijing Urban Construction Design & Development Group raised HK$928m ($120m) on June 30 by pricing its IPO at the bottom of its indicative price range. Institutional books were said to be comfortably covered although the same could not be said of the retail tranche, which ended up only 38% subscribed.

Investors had to do plenty of research work for the IPO as Beijing Urban operates in a very niche market, providing designing, surveying, and construction and consultancy services to the Chinese urban rail transit industry.

“It is a very unusual business and there is no pure design company ...

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