Xinchen China’s Hong Kong IPO does well

Raises US$$90 million on strong demand from retail investors.

The Hong Kong public tranche of Xinchen China Power Holdings, a maker of light-duty gasoline and diesel engines, was more than 20 times oversubscribed, triggering a clawback that boosted this portion to 30% of the deal from the initial plan of 10%.

The institutional tranche now accounts for 70% of the deal, from 90% and was also oversubscribed.

Xinchen China plans to use the proceeds from its IPO to fund the expansion of production capacity and the development of new products, and for research and development.

Its strong IPO showing comes after that of Termbray Petro-king Oilfield Services, an independent China-based provider of high-end oilfield services, which raised $106 million from its Hong Kong offering late February.

The biggest deals in Hong Kong so far this year are Chinalco Mining Corporation International’s $399 million IPO in January, followed by a $160 million offering by PanAsialum, a Chinese maker of iPad casings and other aluminium products.