That's how secondary offerings typically work, investment banks price the offering below the market price to attract institutional investors. If they didn't do that, it's possible the offering could fail. The investment bank doing the offering would take a hit to reputation if they failed to sell the entire offering or the market price fell below the offering price. Hope that makes sense.
To attract investors, bankers go on "road shows" where they basically try to convince institutions to buy into the offering. For hot IPOs, the investment banks will typically try to allocate more shares to their best clients.
So to answer your questions, it's most likely institutions or very wealthy individuals got to participate in this offering. Unless I missed it, It doesn't even look like the offering was in high demand since the bank didn't even exercise the over-allotment option(they could have sold an extra 15% of the secondary offering). It also didn't help that Henan Shuanghui had the food scandal at the same time they were trying to do the offering. $14.10 is probably the best they could do under the circumstances.
it just seemed that 14.10 was a pretty nice discount, considering we were above $15....sure a buck under market on a 30 or 40 or dollar stock makes sense, but percentage wise this was a nice gift to someone.
I do not have a clue ...maybe the prime minister that visited the plant --This company shot itself in the foot by diluting their shares by giving gov`t officials discounted shares. Like a ground floor IPO. I question whether all this money will go to expansion.Too much corruption in China ... just like Russia ...just like USA