Chia Hsin Cement Greater China Holding Corp said on Friday the underwriters for its initial public offering had exercised an over-allotment option, raising the size of the deal to HK$485.5 million (US$62.52 million). Taiwan-backed Chia Hsin, which supplies cement in the coastal areas and eastern provinces of China, will receive net proceeds of HK$62.2 million from the greenshoe option.
Chia Hsin was required to issue 42.9 million shares, or 3.9 percent of the firm's existing share capital, at the offer price of HK$1.48. On December 12, Chia Hsin shares jumped 47 percent from their offering price of HK$1.48 after the firm raised HK$423.28 million in an IPO sponsored by Polaris Securities (Hong Kong) Ltd and GC Capital (Asia) Ltd. Chia Hsin's offering came amid a wave of similar deals on the Hong Kong market as IPO-mad investors stampeded into new shares, particularly from Chinese companies. The company is backed by Taiwan's Chia Hsin Cement Corp (1103.TW), Taiwan's third largest cement maker.