Huadian Power International, the first company to sell shares in China since the summer freeze on flotations, had a strong debut with shares allotted to private investors 264 times oversubscribed, according to China International Capital Corp, which managed the sale. The offering saw 765 million shares priced at RMB2.52 (US$0.30) move off the block. Only RMB284.5m of the RMB1.93bn offering was allotted for institutional and individual investors, the bulk going to the parent company. Now the test will be how Huadian, the first mainland company to have its offer price set by broker consensus instead of government fiat, will do in the market. Under the old regime, prices typically plunged off high offer prices. Meanwhile, the China Securities Regulatory Commission continued on its reform and clean-up campaign, canceling the license of broker China Eagle Securities, citing various improprieties.
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