Report: Investors lukewarm about COSCO’s IPO

Report: Investors lukewarm about COSCO’s IPO    Retail investors gave China COSCO Holdings’ HK$12.9 billion ($1.65 billion) initial public offering in Hong Kong “a lukewarm response” on its first day, Hong Kong newspaper The Standard reported today.
   Brokers told the paper that even low rate financing failed to stir much interest.
   China COSCO Holdings, parent company of COSCO Container Lines, offered to sell more than 2.2 billion “H” shares at a unit price of HK$4.25 (55 cents) to HK$5.75 (74 cents). The price represents a price earnings ratio of between 6.6 and 9, based on forecast earnings for this year, which is considered high by industry standards.
   China COSCO Holdings expects to announce the final price per share of the offer June 29 and to start share trading on the Hong Kong stock exchange June 30.