Investors' response to Evergrande Property Services' IPO last week was lukewarm with the stock pricing near the lower end of the HK$8.50 to HK$9.75 per share range, undermined by concerns about the high debt level of its parent. Thomas Kwok, head of equity business of CHIEF Securities, said the market is concerned about the parent company and the prospects of restructuring. China Evergrande has been scrambling for cash as Beijing tackles what it considers excessive borrowing in the real estate development sector with planned new debt-ratio caps. In an attempt to improve cashflow, Evergrande, whose borrowings totaled $124 billion, has also recently sold secondary shares and entered into an agreement with strategic investors of a now-terminated Shenzhen backdoor listing to not demand repayment.