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Hapag-Lloyd order books for market listing fully covered: source
[FRANKFURT] Container shipping group Hapag-Lloyd has received bids for all of the shares on offer for its planned stock market flotation on Oct 30, a person familiar with the deal said. "Books are fully covered including greenshoe (overallotment option)," the source said on Friday.
While any initial public offering (IPO) usually needs orders twice the amount of shares on offer to go through smoothly, the so-called "covered message", meaning the order book is fully subscribed, is an important signal for potential investors planning to buy shares in the stock market listing.
Hapag-Lloyd had trimmed its offering amid wobbly markets and on Wednesday said it now expected to raise about US$300 million from the sale of shares to investors.