China’s Horizon Construction sees shares plunge 29% in Hong Kong debut

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25th May 2023 – (Hong Kong) Horizon Construction Development Ltd, a provider of construction services in China, saw its shares plunge 29% in its Hong Kong market debut on Thursday after raising US$210.2 million in its initial public offering. The stock opened at HK$3.26 per share, below the offering price of HK$4.52, which was already at the bottom of the range flagged to investors. The spin-off from financial services provider Far East Horizon Ltd will retain a 71.7% stake in Horizon. Demand for Horizon Construction shares was weak during the IPO’s bookbuild with retail investors taking up only 12% of the stock on offer to them. The stock that was not bought was sold to institutional investors, but the institutional tranche was only 1.47 times oversubscribed, which is considered weak compared to previous deals.