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Wah Kwong IPO target underwhelms

Wah Kwong IPO target underwhelms

Hong Kong: The Baltic Dry Index might be scaling incredible highs but the news of an imminent IPO by a well-known name in the bulk trades has been greeted underwhelmingly in terms of the cash it aims to raise. Hong Kong bulk and tanker shipping company Wah Kwong Maritime Transport Holdings Ltd plans to raise as much as $163.5 million in a Hong Kong initial public offering, according to a document obtained by Reuters that details the terms of the deal.
The company, run by the Chao family, is selling 125 million shares, or 25 percent of its enlarged share capital, at HK$7.78-HK$10.20 each, the document said.
Cazenove is sponsoring the deal.
Wah Kwong's predecessor, Wah Kwong Shipping, had been listed in Hong Kong in 1973, but after a period of share price weakness, was delisted and taken private in 2000.
The dollar figure is well below the $200m target that had been banded around earlier.
Wah Kwong is launching its IPO amid record times for the dry bulk industry where the Baltic Dry Index has crested 11,000 points. [22/5/08]

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