Institutional investors target BBMG share offer

BBMG Corp announced that institutional investors will buy more than 50% of its US$700 million initial public offering in Hong Kong, the South China Morning Post reported. BBMG, a Beijing-based building materials firm, has attracted several prominent investors, including China Investment Corporation, Joseph Lau and Robert Kuok. Officially, BOC Investment and China Life Group have been confirmed as two of five cornerstone investors. China Life Group had planned to spend US$100 million but reportedly cut its commitment by half as a result of investor response. As part of the agreement, each of the cornerstone investors will buy US$50 million worth of shares and be subject to a six-month lock-up period. BBMG plans to sell 933.33 million new H-shares on the Hong Kong bourse with trading set to being on July 29.