Leasing
CDB Leasing Hong Kong IPO falls short of expectations
September 15th 2016
China Development Bank (CDB) Leasing had its initial public offering (IPO) in Hong Kong in July. The aircraft leasing unit’s IPO price was set at HK$2 ($0.26) a share. Read More » It earned a total of HK$799 million from entering the public domain.
On its first trading day, the market dealt a heavy blow to the lessor, devaluating the stock to HK$1.86. CDB Leasing is still trading below its IPO price. At press time, a share sold for HK$1.90.
CDB’s foray in the Hong Kong market mirrors that of Singapore-based BOC Aviation. BOC made $1.1 billion when it listed on the Hong Kong Stock Exchange in late May. However, just like CDB Leasing, BOC’s share value took a significant hit on the first day, dropping from its IPO price of HK$42 a share. The stock currently trades at HK$39.50, but slumped as low as HK$36.60 early last month.
Boeing, surprisingly, was a cornerstone investor in BOC’s IPO.
