China International Capital Corp, the country’s first joint venture investment bank, has reduced the size of its long-awaited Hong Kong initial public offering in the face of the bearish outlook towards the profitability of the Chinese brokerage sector.
One source close to the IPO told FinanceAsia that the original $1 billion fundraising target has now been scaled back to about $500 million to $800 million. This prospective 50% cut is the result of a more conservative valuation and a decision to raise less equity from what is largely a primary share deal.
CICC begins two days of pre-marketing today, Thursday. This accelerated schedule partly results...
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