HONG KONG—Chinese home-improvement mall operator Red Star
Macalline Group Corp., backed by private-equity firm Warburg
Pincus, has raised US$931 million in an initial public offering in
Hong Kong.
The offering continues Hong Kong's strong run as an IPO venue
thanks to a stock-market boom. So far this year, Hong Kong ranks
second globally as a venue for IPOs by value, behind Shanghai and
ahead of New York, according to data from Dealogic.
Legend Holdings Corp., the largest shareholder of
personal-computer maker Lenovo Group Ltd., is set to price its Hong
Kong IPO on Sunday, with a person close to the transaction saying
that demand is so heavy that it is likely to price at the top end
of its range and raise US$2 billion.
Guolian Securities Co., the joint-venture partner of Royal Bank
of Scotland Group PLC in China, is also planning order-taking for a
US$500 million to US$600 million Hong Kong IPO Monday, the latest
in a long line of Chinese brokerages tapping investors for funds
this year.
Red Star, China's largest home-improvement shopping mall
operator with more than 160 malls across the country, sold 543.6
million shares at HK$13.28 each, people familiar with the situation
said Friday. The price range of the deal was HK$11.18 to
HK$13.28.
The company secured US$330 million in orders from cornerstone
investors, who agreed to buy and hold the shares for six months,
including New York-based hedge fund Falcon Edge Capital, household
appliances maker Gree Electric Appliances Inc., Shandong
state-owned Asset Investment Holdings, China National Building
Material and hedge fund BosValen Asset Management. It is scheduled
to begin trading in Hong Kong on June 26.
Beijing-based Legend is scheduled to list on June 29, and has
closed both retail and institutional tranches for the offering,
which was in a price range of HK$39.80 to HK$43.00.
If Legend's listing takes place, it would be the year's
third-largest in Hong Kong after a US$4.5 billion listing by
Chinese brokerage firm HTSC, better known as Huatai Securities, in
May, and a US$4.1 billion IPO by GF Securities Co. in March.
Write to Prudence Ho at prudence.ho@wsj.com and Yvonne Lee at
yvonne.lee@wsj.com
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