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Friday, 29 April 2016

EQUITIES: Haitong Sec to start bookbuilding next week

Haitong Securities is set to start bookbuilding early next week for its Hong Kong IPO of US$1.5bn. The issuer is scheduled to wrap up the deal on an accelerated basis.

According to sources, the China’s second-largest brokerage is tentatively looking to start a roadshow on April 17 and price the deal on April 20.

“For now, the timetable is set, but the company does not rule out changes at the weekend,” said a source.

Another source said earlier that the company was looking to secure demand from anchor or cornerstone investors, which had to equal to at least 50% of the deal size, before the official launch. It had already firmed up such demand, added the other source.

The brokerage is also looking to reshuffle its bookrunner combination, with some banks to be promoted to senior positions and others to be demoted.

Citigroup, Credit Suisse, Deutsche Bank, Haitong International and JP Morgan are the original joint global co-ordinators, and joint bookrunners with HSBC, Nomura, Standard Chartered and UBS. It is understood that BoCom International and ICBC International have joined the transaction.   

Last Dedember, Haitong attempted its first Hong Kong listing, but failed due to difficult market conditions. In the last attempt, the company offered 1.229bn shares at an indicative price range of HK$9.38–$10.58 apiece, representing a 2012 P/B of 1.17x–1.32x.


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