CPMC and China High Precision IPOs raise a combined $267 million

Two Chinese small-cap companies priced their Hong Kong initial public offerings on Friday, raising a combined HK$2.07 billion $267 million. Metal-packaging company CPMC Holdings raised HK$1.07 billion and China High Precision Automation Group CHP tapped the market for HK$1 billion.

CPMC sold 200 million primary shares at HK$5.39 apiece, the top of an indicative range that started at HK$3.85.

Retail investors flocked to the deal, with the Hong Kong public offer approximately 200 times covered. This triggered the largest possible clawback and left 50% of the total offering in the hands of individual investors, up from the initial 10%. There were also three cornerstone investors who together took...