East Asian Developments

by K. K. Chadha

Chu Kong IPO Pulls in US$8.77 Million in Interest
China’s Chu Kong Shipping Development Co, which went public in Hong Kong in May, reaped HK$68 million (US$8.77 million) from interest earned from subscription monies. This compares with the company’s profits of $82.98 million for last year and $59.8 million for 1995. Investors applied for 480 times the company’s shares available to the public, locking up HK$97 billion of public money.

Director Jackie Huang Jiangji said the subscription level was satisfactory, given competition for funds with fellow red chip Beijing Enterprises Holdings, whose May offering was more than 1,000 times subscribed.

Chu Kong issued 187.5 million shares at HK$1.20 each to raise HK$225 million in its initial public offering. Ten percent of the shares were reserved for employees.

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