A 920 million share IPO for China Resources Power CRP was priced at the very top of its indicative price range on Friday and like PICC before it, should make a similarly impressive debut on the Hong Kong Stock Exchange when it begins trading on Wednesday. Led by BOCI and Morgan Stanley, the offering was priced at HK$2.80 per share, representing a PE ratio of 7.8 times 2005 earnings and 25% of issued share capital pre greenshoe.
Getting investors to accept a 2005 multiple was one of the key tests of the $330 million deal, since this is the first year the company will record normalised financials after a period of...
