Asia Cement falls on report of China unit’s IPO missed pricing estimate

Asia Cement Corp (亞泥), Taiwan’s second-largest cement maker, fell by the biggest daily drop in two months in Taipei trading, after a report saying its Chinese unit’s initial public offering in Hong Kong completed pricing that was lower than expected.

Shares of Asia Cement fell 6.6 percent to close at NT$51.70, its largest daily drop since March 13, in Taipei yesterday.

Asia Cement (China) Holdings Corp (亞泥中國控股), the Chinese unit of Asia Cement, completed pricing on Saturday for its initial public offering in Hong Kong at HK$4.95 per share, lower than market estimates, the Chinese-language Economic Daily News reported yesterday, without citing anyone.

Edward Huang (黃健強), Asia Cement’s senior vice president, did not return calls seeking comment.

Asia Cement (China) could raise as much as HK$2.42 billion (US$310 million) from selling 375 million new shares at prices ranging from HK$4.85 to HK$6.45 each in an initial public offering in Hong Kong to help fund its expansion plan, Asia Cement (China) said on May 4.

The stock will start trading next Tuesday.