Aluminum-products manufacturer China Zhongwang Holdings raised US$1.26 billion in the world’s largest initial public offering (IPO) so far this year, the Wall Street Journal reported. The company sold 1.4 billion new shares – or 25.9% of its enlarged share capital – on the Hong Kong Stock Exchange at HK$7 (US$0.90), according to people familiar with the deal. The indicative price range was HK$6.80-8.80, which gives a price-to-earnings ratio of 10.7 times projected earnings for 2009. The outbreak of swine flu, which weighed on investor demand, was thought to be largely responsible for China Zhongwang failing to raise the US$1.58 billion at the top of the range. The second-biggest IPO was Mead Johnson Nutrition, which raised US$828 million in New York in February.
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