Mingfa Group cuts offering price, proceeds with HK IPO

Nov. 5, 2009 (China Knowledge) - Mainland property developer Mingfa Group (International) Co<0846> has cut the offering price for its initial public offering on the Hong Kong Stock Exchange due to investors' waning interest in mainland property stocks, sources reported.

The Fujian-based real estate developer Wednesday said in a statement that it would issue 900 million shares at a price indicated between HK$2.00 and HK$2.89, compared with the price of HK$3.03 to HK$3.79 set earlier.

Investors will be able to subscribe for the shares from Nov. 4 to Nov. 9, and the total amount of fund raised is estimated at HK$1.8 billion to HK$2.6 billion, it said.

The company, which is scheduled to list on the bourse on Nov.13, plans to use 60% of the proceeds for land acquisition and 30% to finance future projects, according to its prospectus.

Deutsche Bank AG is reportedly the global coordinator of the IPO.