Qingdao Port International Co has raised a combined HK$2.92 billion (US$377 million) in a rare, accelerated, pragmatic fixed-price sale in Hong Kong, Reuters reports.
Six big investors pledged to buy nearly 50 per cent of the IPO, at first targeting $168 million.
Among them were Shanghai Zhenhua Port Machinery and Sinotruk International Investment (together $50 million) as well as China International Marine Containers ($30 million) and DP World Asia ($10 million).
The company plans to use 90 per cent of the proceeds to invest in new storage facilities for oil and iron ore, as well as the construction of two crude oil berths, two general berths and two liquid chemical berths.
Its fixed-price strategy "made it more efficient, simpler" and faster to execute, said a source, who was not authorised to speak publicly.
Unfavourable market conditions induced Chinese pork producer WH Group abandon a Hong Kong IPO seeking HK$5.3 billion in April, while Lotte Shopping, deferred its HK$1 billion real estate investment trust listing three weeks ago.
After three and a half days of bookbuilding, the Qingdao deal closed rather than the typical two weeks it usually takes, when management and underwriters travel around the world to gauge demand at different price levels for the stock.
The company is the primary operator in the Port of Qingdao, but its market share has shrunk while volumes through the port have increased, Qingdao Port Group share fell from 88 per cent in 2011 to 83 per cent in 2012 and to 76 per cent in 2013.
BOC International, Citic Securities International and UBS AG were joint sponsors of the IPO and will share the $6 million in sponsor fees.