Strong demand for China South Locomotive IPO

The intial public offering of China South Locomotive & Rolling Stock in Shanghai attracted heavy demand on Wednesday, Reuters reported. The IPO of China’s largest train maker raised US$956 million and had one of the highest oversubscription ratios of a big IPO in two years, drawing US$331 billion of retail and institutional subscriptions. The offer of 3 billion shares represented 30% of China South Locomotive’s expanded share capital. Shares were priced at RMB2.18 (US$0.32), at the top of the company’s indicated range. It was China’s first major IPO since April, when gold miner Zijin Mining Group raised US$1.46 billion.