First mainland IPO under new listing rules oversubscribed 4,335 times

The first initial public offering in China under rules meant to facilitate listings was oversubscribed by 4,335 times, Reuters reported, citing a statement from Guangzhou Goaland Energy Conservation Tech. The coolant producer’s January 25 debut saw an oversubscription ratio of about 10 times that seen before the rule change, which ended a requirement for pre-paid capital from investors during pre-IPO subscriptions. Goaland plans to issue 16.67 million shares at a price of RMB15.52 (US$2.36) per share in a listing on the ChiNext market in Shenzhen. Regulatory restrictions including guided pricing mechanisms ensure shares nearly always jump upon hitting the secondary market, stoking demand among local investors in the primary market.