Bad-debt IPO set to raise billions

China Cinda Asset Management Co got a hot response from investors in a roadshow on Monday for a Hong Kong IPO that is expected to raise up to $2.5 billion.

Cinda, one of China's four bad-asset managers, has lined up 10 cornerstone investors in its 5.3-billion-share offering, setting a range of HK$3 (39 US cents) to HK$3.58 per share. If it activates the 15 percent greenshoe option, total funds raised could reach HK$21.9 billion.

The cornerstone investors include New York-based Och-Ziff Capital Management Group LLC, China Life Insurance Co and Norges Bank Investment Management, Norway's sovereign-wealth fund.