StanChart gets muted response | FT

Standard Chartered has received a muted response to its plan to raise up to HK$2.94bn (US$376m) through a new listing in Hong Kong.

The portion of the offering set aside for retail investors was 1.3 times subscribed, the bank said on Monday, while sources familiar with the offering said the institutional tranche was two times subscribed.

By contrast, the retail tranche of the July initial public offering of Bank of China (Hong Kong), the territory's second-largest banking group, was about 27 times subscribed and the institutional portion five times subscribed.

Standard Chartered said the listing was aimed at broadening its investor base and raising its profile in Hong Kong, where it is one of the largest issuers of credit cards and mortgages and is one of three note-issuing banks. However, the offering has come at a time when there is little enthusiasm for Hong Kong banks, which are suffering from weak loan growth and a rise in credit card write-offs. more