Shares in China Telecom Corp got off to a slow start on the New York Stock Exchange, after an eventful initial public offering that saw it halve its offer by 55% to 7.5 billion shares, following weak investor interest.
Its shares fell 7% to trade at $17.65, down from $18.75, as of 11am EST. Analysts had been predicting that the shares would make a low-key trading debut in New York on Thursday, and Hong Kong on Friday.
The lack of interest in telecoms stock meant that the Chinese carrier had to price its offer at HKD 1.48 ($18.90), the bottom of the indicative range. It is thought that those who have brought the shares are more likely to be investors with a long-term strategy, with 95% of the shares going to institutions.