China’s New Century Shipbuilding has slashed the size of its Singapore initial public offering and is now looking to raise up to $766.4 million or less than half the amount it had indicated previously.

In a statement late on Friday, New Century said it was offering 560 million new shares at a maximum price of $1.19 a share. The firm’s existing shareholders may sell an additional 84 million shares if an overallotment option is exercised by banks managing the IPO.

New Century had originally planned to sell 1.46 billion shares, including 488 million shares held by existing shareholders, for between 98 cents and $1.19 a share, raising as much as $1.7 billion.

A source involved in the IPO said on Saturday that the offering had been “right-sized to succeed in the current market conditions.”

The maximum offer price of $1.19 works out to around 8.4 times forecast earnings per share compared with a price-earnings (PE) ratio of 11.1 times for rival Singapore-listed Chinese shipbuilder Yangzijiang (YAZG.SI), the source added.

New Century is China’s largest privately owned shipbuilding firm and specialises in bulk and oil carriers. The firm will use money raised from the IPO to improve capacity at its two yards, expand steel structure production, and acquire or invest in new shipbuilding facilities.

Investor sentiment has dimmed in recent weeks due to the troubles in Greece which could spread and affect other parts of the eurozone. China’s efforts to rein in bank lending and cool its property market have also made investors more cautious.

New Century’s IPO is managed by UBS, with Morgan Stanley as joint bookrunner, co-lead manager and international underwriter.