Langham IPO falls flat

Shares dropped as much as 9% in Hong Kong.

Langham Hospitality Investments Ltd’s 9% fall in Hong Kong is considered the worst debut so far for an IPO worth at least $500 million in Asia this year.

Based in Hong Kong, Langham Hospitality raised US$549 million last week selling units at HK$5.00 each, which is near the midpoint of its price range.

Langham Hospitality is a trust backed by Great Eagle Holdings Ltd that owns The Langham, Langham Place Hotel and Eaton, all located in Kowloon.

Citigroup Inc., Deutsche Bank AG and HSBC Holdings Plc managed the offering for Langham Hospitality. Langham Hospitality improved operating profit by 14.5% to HK$504.8 million last year while revenue rose 8.9% to HK$1.6 billion on higher occupancy rates.