Euro-Asia Holdings flowers towards top of range

Beijing''s winning bid for the 2008 Olympics is likely to spur the grey market price of Chinese flower grower and agri-tech company, Euro-Asia Agricultural Holdings.

Jackie Horne

July 15, 2001

In a deal led by ICEA Capital, Euro-Asia Agricultural Holdings priced a 400 million share deal last Friday at HK$1.48 per share. Raising proceeds of HK$592 million ($76 million), the deal priced in the upper half of a HK$1.31 to HK$1.55 indicative range.

Bankers comment that the recent poor aftermarket performance of Hong Kong IPOs led the company to hold back a little on pricing at the very top end of the range even though it secured strong over subscription. The Hong Kong retail IPO, for example, closed 78 times oversubscribed, while the institutional placement secured a 12 times level. As a result of clawbacks, there is now a 60% / 40% split between retail and institutional investors.

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