HONG KONG (AFP) - first hypermarket operator China Sun Art Retail Group raised 1.06 billion in the sale of the share of Hong Kong, defying the recent volatility in the largest IPO in the world market.
The giant of the retail sale, supported by the France of the Auchan SA group, sold the shares of 1.14 billion to HK$ 7.20 (93 US cents) each, the upper end of the price range, told Dow Jones Newswires, quoting an anonymous source.
The firm, which will begin to trade in Hong Kong, July 15, has an option to increase the supply of 15 per cent, if the shares are oversubscribed, which will stimulate the deal to $ 1.2 billion.
Company executives said they were positive on the sale of shares and planned to use half of the proceeds to open 51 stores in mainland China at the end of next year.
Sun Art currently has 197 hypermarkets in China.
The group, formerly known as Sunrise Holdings Greater China Ltd. is a joint venture between Taiwanese supermarket to cement conglomerate Ruentex group and group Auchan.
The offer, the latest bid by a Chinese company to market valve Pit of Hong Kong - the largest world in 2010 for the second year in a row - comes despite a batch of weak new registrations.
Some companies have recently decided to delay or cancel their listings in Hong Kong citing global markets turmoil.
Prada Italian luxury goods maker begins a dull in the financial market in June after a lower than expected 2.14 billion in the sale of its share.
And Australian minor Resourcehouse also last month aside an IPO, originally planned to raise as much as $ 3.6 billion, citing weak market conditions.
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