Horizon Construction Development Prices Their IPO On The Lower Price Band

According to two sources with firsthand knowledge of the situation, Shanghai-based Horizon Construction Development Ltd intends to price its IPO shares at the low end of its marketing range.

The construction services company will generate HK$1.65 billion ($210.2 million) through an initial public offering priced at HK$4.52 per share. When the deal was announced last week, the company had asked for up to HK$4.80 per share.

Because the material has not yet been made public, the sources declined to be identified. Horizon did not respond to requests for comment.

Horizon sold 364.6 million shares in its initial public offering, valuing the company at HK$14.5 billion ($1.8 billion).

Horizon is being split out from Far East Horizon Ltd, which will retain a 71.7 percent share in the company.

According to Refinitiv statistics, almost $1.5 billion has been raised via Hong Kong IPOs so far this year, somewhat more than the $1.2 billion raised in the same period last year.

The largest deal was spirits company ZJLD Group, which raised $675.2 million in its IPO last month but has subsequently lost 20% of its value.