HONG KONG, April 11 (Reuters) - Shares in Guotai Junan Securities Co Ltd were set to open flat in their Hong Kong debut on Tuesday, after China’s third-largest brokerage by assets raised $2.1 billion to expand its institutional client business and open retail branches.
Guotai Junan was indicated to open at HK$15.84, the same as its share sale price of HK$15.84 for the rare fixed-price stock offering. The benchmark Hang Seng index was poised to open flat.
Demand from retail investors - who have a significant influence over first-day trading in Hong Kong share offerings - accounted for just 3.6 times the number of shares on offer in the Guotai Junan deal, the company said in a filing on Monday, while the institutional tranche was well oversubscribed. (Reporting by Elzio Barreto; Editing by Stephen Coates)