December 20, 2010 Singapore stock market and companies daily report (China Fishery, CDL China, SinoPac): China Fishery Seeks HK dual listing, Global Offering Of New Shares
Just 6 months after securing US$190m private-equity investment from the Carlyle Group, China Fishery Group is looking to undertake a global offering of new shares and a dual primary listing on the Mainboard of the Hong Kong Stock Exchange (SEHK). The industrial fishing firm said that it plans to issue up to 175m new shares. This is subject to adjustment and an over-allotment option of up to 25m new shares. The group has yet to price its offer, but said it ‘will not be at a discount of more than 10% to the weighted average price for trades of China Fishery shares done on the SGX-ST for the full market day on which the offer price is determined’. Using China Fishery’s $2.26 share closing price on 17 Dec as a guide, the size of the global offer could centre around $452m, including the over-allotment option.
Significance: China Fishery derives more than half its revenue from China. The dual listing in HK therefore, is expected to enhance its profile in China and Asia, and strengthen its business and customer base in the region. Meanwhile, by listing in SEHK, shares will likely improve.
CDL China Makes $46m First Acquisition In Chongqing
CDL China, the China division which City Developments (CDL) set up in August, has acquired its first development site in Chongqing, China for Rmb232m ($45.7m). The purely residential site, which was won by CDL China’s wholly owned Hong Kong subsidiary China Venture Investments through a government land auction, consists of two adjacent plots of land totalling 27,200 square metres and situated next to the historic Eling Park. CDL China intends to build an ultra luxurious low-rise development comprising of villas, duplexes and townhouses. Construction is expected to commence next year and the initial plan is to build around 150 units.
Significance: The acquisition goes well with CDL China’s plans, to target all segments of China’s property market – the high-end, mid-tier, mass market residential markets as well as the commercial and hospitality sectors. Coupled with growing population and strong demand in Chongqing’s real estate market, the acquisition comes at the right time.
SinoPac Remarks That There Is No Bubble In TDR Market
Considering the underperformance of Taiwan Depositary Receipt (TDR) issued recently, investors raised concerns over the potential bubble in the TDR market that needs to cope with the increasing number of Taiwanese IPOs and the overcrowding TDRs at the same time. However, SinoPac Securities believed that there is no potential bubble in the TDR market citing Yangzijiang Shipbuilding Holdings (YZJ) as an example. YZJ’s TDR issuance did help the firm to enhance its original share price and trading liquidity as well as establish an important entry point into Taiwanese shipbuilding and shipping sectors. SinoPac also revealed that it is currently in talks with 10 listed companies, including S-chips, on the prospect of TDR listing and may bring in 2 Hong Kong ‘heavyweights’ companies to dual-list in Taiwan next year.
0 comments:
Post a Comment