Update | China Literature listing expected to leave ZhongAn’s IPO in its shadow
Latest estimates by financial data provider Infocast suggest Tencent unit’s IPO is already 150 times oversubscribed
The highly-anticipated initial public offering of Tencent unit China Literature, mainland China’s largest online publishing and e-book site, has been way oversubscribed, and analysts are now predicting the flotation to be the hottest this year.
Infocast, a financial data provider, said the listing has already locked up a preliminary HK$130 billion (US$16.66 billion) of investor capital, and has already attracted demand of 150 times the number of shares on offer.
The company headed by CEO Wu Wenhui, in which Tencent has a 65.38 per cent stake, offered 151.37 million shares globally at an indicated range of HK$48 to HK$55 each. It has allocated 10 per cent of the offer to the public.
Applications for the public tranche closed at noon on Tuesday.
Infocast estimated its size of public orders for shares based on information from eight local brokers, including Bright Smart Securities, Haitong Securities, and Phillip Securities.