[THE INVESTOR] Chinese auto parts manufacturer Rothwell International, which took orders from retail investors for its initial public offering on Korea’s tech-heavy KOSDAQ next week, was 328 times oversubscribed with deposits totaling 3.15 trillion won (US$2.71 billion won), the company said on June 20.
“As a listed Chinese firm, we will take the lead in resolving China discount and creating premium,” said Zhou Xiangdong, the company’s chief executive.
Rothwell International started taking subscriptions from retail investors on June 17 to sell some 6 million shares which ended up drawing orders for 1.97 billion shares.
The successful presale shows investors’ high expectations on stocks related to electric auto parts business. During a two-day presale demand survey conducted last week, the tranche for institutional investors was also 578 times oversubscribed.
The company decided to sell shares for 3,200 won apiece in the IPO slated for June 30.
Rothwell International said it would use the funds that will be raised through the IPO for facility expansion and R&D investment.
By Park Han-na (
hnpark@heraldcorp.com)