Watch Desk posted an update
Suzhou Dongshan Precision’s Hong Kong share sale has been undersubscribed, with fewer than 10,000 applicants, the South China Morning Post reports. The Chinese printed-circuit-board maker is seeking up to HK$10.7 billion (US$1.36 billion).
Why it mattersThe paper says some institutional investors withdrew large orders after the company’s A-share price fell nearly 10 per cent on Thursday. That makes this more than a smaller fundraising target: demand for the listing appears to have weakened on both the retail and institutional sides. For a supplier of computing hardware, the market reception is worth watching, though one IPO is no verdict on the wider sector.
Discuss: Does weak demand point to investors losing confidence in Dongshan, or is this listing being judged too harshly on a single difficult week?
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