Back to Headlines Print Version Buzz Up Stumble it Tweet it Facebook LinkedIn

Longfor Hong Kong IPO Institutional Book 6 Times Covered - Source

HONG KONG -(Dow Jones)- The institutional tranche of Longfor Properties Co.'s (0960.HK) initial public offering was six times subscribed, locking up US$4.9 billion worth of funds, a person familiar with the situation said Thursday.

The insitutional tranche accounts for 90% of the offering, which will raise up to US$1.05 billion, including an overallotment option.

The property developer aims to list on the Hong Kong stock exchange Nov. 19.

The institutional investors are mainly long-term funds and insurance companies, the person said, adding that few placed limit orders at the bottom of the range.

The Chongqing-based developer said in its IPO prospectus it will use the proceeds of the listing to finance existing projects, acquire new ones and replenish working capital.

Citigroup Inc. (C), Morgan Stanley (MS) and UBS AG (UBS) are the deal's bookrunners.

-By Amy Or, Dow Jones Newswires; 852-2832 2335; amy.or@dowjones.com

  (END) Dow Jones Newswires
  11-05-092045ET
  Copyright (c) 2009 Dow Jones & Company, Inc.