State-owned Postal Savings Bank of China (PSBC) on Tuesday launched an initial public offering in Hong Kong worth up to $8.1 billion, with the vast majority of the deal covered by cornerstone investors.
The group of six cornerstone investors will buy as much as $5.86 billion worth of stock on offer, or about 72 percent of the IPO, underscoring tepid demand for Hong Kong offerings from retail investors and fund managers in the city.
That would put it near the record 77 percent cornerstone tranche for the $810 million listing of China Development Bank Financial Leasing in July.
Large investments by cornerstone investors hurt liquidity for IPOs once the shares start trading, as the stock is locked up for a minimum of six months. The cornerstone money can also pressure the stock as the expiration of the lock-up period nears.