Zijin Mining Group, the mainland's second-largest gold miner, scaled down its A-share initial public offering, bowing to weak market sentiment.
Essence Securities, underwriter of the float, said yesterday it was cautious on the offer's outlook, admitting the price may not be set at the top end.
Zijin's offering will be cut to 1.4 billion shares from 1.5 billion at a price range of 6.88 yuan (HK$7.67) to 7.13 yuan each. The deal may raise as much as 9.98 billion yuan, it was announced yesterday.
Subscription of 420 million shares opened for institutional and corporate investors yesterday and the remaining 980 million shares go on offer to the public through online bidding today.
'The offering to institutional investors went smoothly,' said a source at Essence Securities' investment bank department. 'But it is uncertain whether public investors will show keen interest in the IPO.'
Zijin's Hong Kong-traded shares yesterday closed at HK$7.61, up 1.74 per cent.
Mainland investors' buying frenzy ebbed after shares of China Pacific Insurance (Group) fell below its offering price late last month.