As the Joint Bookrunner and Joint Lead Manager, ABC International (“ABCI”) successfully assisted the listing of China Machinery Engineering Corporation (“CMEC”) on the mainboard of the Hong Kong Stock Exchange on December 21, 2012. CMEC’s IPO, with the total fund raised up to HK$ 4.459 billion, became the second most profitable new stock with overall encouraging performance this year.
Having been oversubscribed by nearly 57 times in IPO, CMEC received encouraging responses in its global offering and ranked the top in terms of over-subscription this year. The offer price was set at the upper range of HK$5.40, representing price-earning ratio of 6.8x. On the first trading day, the share price of CMEC went up against the underperforming market, soaring from the opening quotation of HK$6.08 to the peak of HK$6.42 before closing at HK$6.30, nearly 17% higher than the issue price. The total transaction volume reached 315 million shares in the amount of HK$1,955 million.
ABCI successfully secured PICC as one of the cornerstone investors with a total investment amount of US$50 million, along with a number of high quality anchor investors comprising of sovereign funds and high-end corporate and private investors.