Tag: Liquidity

In ECM, local is beautiful

HONG KONG (Dow Jones Investment Banker) – The Stock Exchange of Hong Kong’s growing effort to secure international listings speaks volumes about the possible threat posed by the Shanghai international board – when it eventually happens. Recent attempts, however, have been disappointing and HKEx should take stock of Kuala Lumpur’s (KL’s) Bursa Malaysia. Staying local has proved worthwhile. read

, , , , , Hong Kong, Liquidity, Listing by introduction... +3 more

Trigiant’s IPO call may not connect

HONG KONG (Dow Jones Investment Banker) – Trigiant Group Ltd. has just filed a web proof information pack (WPIP) with the Stock Exchange of Hong Kong, the first step towards its proposed IPO. Little information has filtered about the structure of the deal, but a quick round up of ECM desks indicates that the mandate wasn’t competitive. Despite a limited trading history, the company has posted impressive growth rates and enjoys significant market share in an industry it dominates alongside two major competitors. At the same time, its reliance on a small number of clients and suppliers, and its high gearing, raise questions about the sustainability of its business model, as do some troubling past financial practices.


, , , , , , China, Corporate governance, Dual listings... +4 more

San Miguel powers SMC Global float

HONG KONG (Dow Jones Investment Banker) – The board of San Miguel Corp., the Filipino beer-to-infrastructure conglomerate, approved the reorganization of its power business and an increase in its share capital on August 12. After exploring several options, including a possible backdoor listing, San Miguel has settled for an IPO in Manila of up to US$500 million for its 75% subsidiary SMC Global Power Holdings. Macro factors, as well as current expansion plans for the business, look attractive, but San Miguel shareholders are unlikely to gain much through the value arbitrage.


, , Liquidity, Spin-offs, The Philippines

It’s the liquidity, stupid

HONG KONG (Dow Jones Investment Banker) – Singapore Exchange Ltd. (SGX) may have made headlines this year with the listing of one of Asia’s largest IPOs, Hutchison Port Holdings Trust, and, potentially, with the proposed flotation of Manchester United F.C., but Chinese mid-caps are increasingly leaving the shores of the Lion City to seek a quotation in Hong Kong. The reasons include, above all, greater liquidity, a wider following on the part of sell-side research analysts and, ultimately, a higher valuation.


, , , , China, De-listing, Hong Kong... +2 more

Milan Station IPO not yet in the bag

HONG KONG (Dow Jones Investment Banker) – Luxury second-hand handbag retailer Milan Station Holdings Ltd. is eyeing an IPO of up to US$35 million, for about 25% of the company in Hong Kong, according to a filing with the Stock Exchange of Hong Kong May 3. The transaction raises questions about the company’s supply arrangements, and the sustainability of its business model.


, , Cornerstones, Hong Kong, Liquidity

Trading the offshore yuan gravy train

HONG KONG (Dow Jones Investment Banker) – The large-scale trading simulation this week of offshore yuan-denominated securities in Hong Kong lays the groundwork for a market that could soak up the mountains of Chinese currency that cannot be repatriated easily to the mainland. It also looks very much like a dress rehearsal for Cheung Kong (Holdings) Ltd.’s long-awaited IPO and listing of a US$1 billion equivalent, yuan-denominated REIT in Hong Kong.


, , , , , China, Hong Kong, Liquidity... +3 more