Women's shoe maker and retailer Belle International Holdings has raised HK$8.68 billion by pricing its initial public offering at HK$6.20 per share, the top of the indicative range, after the retail portion was more than 500 times oversubscribed.
The final pricing for the 1.4 billion shares being sold on the main board is 34.1 times forecast earnings for this year, much higher than the industry average of 25 times.
Analysts believe the shares have room to rise because of overwhelming demand from investors that had led to a record HK$434 billion in funds being tied up in the offer.
'Belle could rise at least 30 per cent on its trading debut as investors are bullish on China consumer plays, especially [since Belle] is a leading player in the industry,' said a fund manager who was involved in the share offering.
Because of the strong response from retail investors, Belle boosted its retail portion to 50 per cent of the offered shares from the original 10 per cent.
The international tranche of the offer was more than 50 times oversubscribed.
Trading in Belle shares will begin on Wednesday.