China State Construction Engineering Corp., the nation’s largest housing contractor, raised 50.16 billion yuan ($7.3 billion) in Shanghai in the world’s biggest initial public offering in 16 months.
The 12 billion shares were sold to investors at 4.18 yuan each, top of the range, according to a filing to the Shanghai Stock Exchange yesterday. Institutional investors bid for 38.38 times the 6 billion shares in the “offline” tranche of the sale. Retail and other institutional buyers who bought “online” bid for 35.39 times the balance of 6 billion shares.
State Construction is taking advantage of a stock market rally to raise money for real-estate projects as a recovery in the world’s third-largest economy boosts property prices. The IPO, the fifth since China ended a nine-month moratorium on sales in June, is the biggest worldwide since Visa Inc. collected more than $19 billion in March 2008.
Read the full article “State Construction Raises $7.3 Billion in China IP” at Bloomberg.com (July 24, 2009).