Rundong parks $124m IPO at the bottom of guidance

Cars - 230x150
By Rev Hui
07 Aug 2014

Retail investors gave China Rundong Automobile Group’s HK$962m ($124m) IPO the cold shoulder as their tranche ended up only 32% covered. Luckily for the car dealer, there was enough interest from institutional accounts to make up the gap, allowing it to seal the deal on Wednesday.

Demand for Rundong’s 268.6m shares was always expected to be lukewarm to begin with, which was why joint bookrunners Bank of America Merrill Lynch and Morgan Stanley decided to make sure everything was in place before launching the deal into the market.

They achieved that by building a ...

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