Investors flock to Metallurgical Corp of China IPO

Metallurgical Corp of China (MCC), one of the country’s largest engineering and construction groups, saw subscriptions to the Shanghai portion of its initial public offering (IPO) reach a better-than-expected US$234 billion, the Financial Times reported. MCC is seeking to raise US$5.3 billion through a dual listing in Shanghai and Hong Kong in what would be the world’s second-largest IPO so far this year. The company is selling 3.5 billion shares in Shanghai, which equates to 21% of its expanded share capital, at RMB5.42 (US$0.79), the top end of its indicative price range. The retail and institutional portions of the offering were 91 times subscribed and 75 times subscribed respectively. MCC will start trading in Shanghai on September 21 and in Hong Kong on September 24.