by winston » Wed Nov 25, 2009 9:47 am
Applied.
DJ MARKET TALK: Fantasia May Rise On Debut; Strong IPO Response
0829 [Dow Jones] NEW LISTING: Fantasia (1777.HK) may rise given strong IPO response, as China property developer's retail tranche 159X oversubscribed, triggering clawback so retail investors allotted 50% of 1.458 billion shares offered.
IPO priced at HK$2.18, vs indicative range of HK$1.75-HK$2.20. Gray market priced ended +12.4% at HK$2.45. KGI notes as of end-June 2009, group achieved 80% of FY09 target sales; also adding confidence is group having a number of cornerstone investors, including Joseph Lau of Chinese Estates (0127.HK), Cheung Chung Kiu of CC Land (1224.HK).
"Fantasia land bank concentrates in Sichuan Economic Zone that may be easier to benefit from the strong economy growth of China western area," KGI says. Based on IPO price, market cap at around HK$10.6 billion, vs market leader China Overseas' (0688.HK) HK$136.74 billion currently.
But IPO price at 29X FY09 P/E, not particularly attractive vs COL's 20.9X based on Thomson Reuters. Citic Securities, Deutsche Bank are listing sponsors.
Source: Dow Jones Newswire
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