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Mulsanne Prices Hong Kong IPO Below Marketed Range

Crystal Tse

(Bloomberg) -- Mulsanne Group Holding Ltd. priced its Hong Kong initial public offering below an indicative range, the first deal to do so since the city’s stock exchange amended rules to allow pricing flexibility last year, according to people with knowledge of the matter.

The Chinese menswear company raised $112 million after selling 200 million shares at HK$4.39 apiece, said the people who asked not to be identified because the information is private. The shares were offered at HK$4.68 to HK$5.88 each earlier, according to a prospectus.

The Hong Kong stock exchange carried out several changes last year to make itself a more attractive IPO venue against competitors in China and the U.S. Those amendments include allowing listings with weighted voting rights and relaxing requirements for biotechnology companies in order to draw more new-economy firms.

An IPO pricing flexibility mechanism was also among the initiatives. Under the process, companies can price their share sales as much as 10% below the bottom end of the indicative range without having to submit a new listing application. In the U.S., firms can opt to cut or even increase the deal size, when certain criteria are met.

An external representative for Mulsanne declined to comment on the final pricing. The company expects to start trading May 27, the prospectus shows.

Credit Suisse Group AG, Citigroup Inc. and CMB International Capital Ltd. are joint sponsors for the offering, the prospectus shows.

To contact the reporter on this story: Crystal Tse in Hong Kong at ctse44@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Robert Fenner

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