Hitting a high of 33.5c today. Market price movement are all reflective of potential capital appreciation news, such as dual-listing. This babe is definitely worth more than the current closing price - remember the majority shareholder offered 42c, plus existing stake in a listed company, albeit an empty one.
Got hope leow. Should be able to move steadily to 42 soon.
--
Business Times - 20 Jan 2010
No halt to dual
listings in Hong Kong
HKEx
denies media reports, says it will not stop listings by way of
introduction
By Conrad Tan, in Hong Kong
HONG KONG
has no plans to stop foreign companies from listing there by way of introduction
despite concerns over the large movements in the share prices of some recent
listings, officials from the Hong Kong stock exchange and the government said
yesterday.
SHANGHAI, March 17 (Reuters) - China-focused private capital funds, once eager to help Chinese companies go public, are now more interested in listed firms which have the potential to be privatised at a low cost, dealmakers said on Tuesday.
Public listings on international stock markets and trade sales of private capital-backed companies used to be two of the most popular options used by private equity and venture capital funds to exit their investments.
However, the global investment landscape has changed greatly in the past year due to the financial crisis as many companies had to delay or cancel their plans for initial public offerings.
To some Chinese entrepreneurs whose companies went public in early 2008 before IPOs completely dried up, listings were not a happy experience either as the share prices of such firms have mostly fallen below their IPO levels.
"Some entrepreneurs are now planning to privatise their listed companies as they don't have the heart to see continuous falls in share prices below a reasonable level they can accept," said Sequoia Capital's founding China partner Neil Shen.
Shirley Chen, a managing director of China International Capital Corp (CICC), said her firm has been looking at several small- and mid-sized listed companies with potential for privatisation this year.
She did not name any companies but noted it could be a good opportunity now to work with entrepreneurs to delist their companies from second-board markets such as the Alternative Investment Market of the London Stock Exchange.
"Second-board markets in London or Singapore are too small for some Chinese companies. After IPOs in these markets, it will be really difficult for these firms to raise additional funds from these markets particularly in bad times," said Chen, who is also the head of private equity at CICC.
Chen noted privatisation of listed companies would cost less now due to cheaper share prices, and trade sales when companies grow bigger can be an exit option for funds.
CICC is China's first investment banking joint venture, in which Morgan Stanley (MS.N) holds a 34.3 percent stake.
WHEN TO INVEST?
"Share prices of some listed companies fell very sharply in the past year, so we should be happy to make investments now from the perspective of private equity funds," Chen said. Continued...
"One goal is to help these firms to delist and we can offer loans to entrepreneurs to buy back shares or we can work with them together to buy out their companies," she added.
Even after gaining 20 percent this year, the benchmark Shanghai Composite index .SSEC is down 64 from its October 2007 peak.
Jing Huang, managing director of Bain Capital, also said privatisation of listed Chinese firms provided a good investment opportunity. However, he warned many Chinese entrepreneurs disliked private equity investors interfering with their management and business.
Speaking at an industry forum on Tuesday, Sequoia's Shen and CICC's Chen said late this year or early next year may be the best time to start to make China deals when valuations settle down.
But they also said they would not invest in companies whose prices look "too cheap to be true".
"I always believe if a company offers you a price that is incredibly low, for instance, some companies that ask for price-earnings ratio of 4 times or even 3 times, there must be a reason behind that you probably don't know," said CICC's Chen.
"We are still in the financial crisis so we must be extremely cautious," she added. (Editing by Lincoln Feast)
SHANGHAI, March 17 (Reuters) - China-focused private capital funds, once eager to help Chinese companies go public, are now more interested in listed firms which have the potential to be privatised at a low cost, dealmakers said on Tuesday.
Public listings on international stock markets and trade sales of private capital-backed companies used to be two of the most popular options used by private equity and venture capital funds to exit their investments.
However, the global investment landscape has changed greatly in the past year due to the financial crisis as many companies had to delay or cancel their plans for initial public offerings.
To some Chinese entrepreneurs whose companies went public in early 2008 before IPOs completely dried up, listings were not a happy experience either as the share prices of such firms have mostly fallen below their IPO levels.
"Some entrepreneurs are now planning to privatise their listed companies as they don't have the heart to see continuous falls in share prices below a reasonable level they can accept," said Sequoia Capital's founding China partner Neil Shen.
Shirley Chen, a managing director of China International Capital Corp (CICC), said her firm has been looking at several small- and mid-sized listed companies with potential for privatisation this year.
She did not name any companies but noted it could be a good opportunity now to work with entrepreneurs to delist their companies from second-board markets such as the Alternative Investment Market of the London Stock Exchange.
"Second-board markets in London or Singapore are too small for some Chinese companies. After IPOs in these markets, it will be really difficult for these firms to raise additional funds from these markets particularly in bad times," said Chen, who is also the head of private equity at CICC.
Chen noted privatisation of listed companies would cost less now due to cheaper share prices, and trade sales when companies grow bigger can be an exit option for funds.
CICC is China's first investment banking joint venture, in which Morgan Stanley (MS.N) holds a 34.3 percent stake.
WHEN TO INVEST?
"Share prices of some listed companies fell very sharply in the past year, so we should be happy to make investments now from the perspective of private equity funds," Chen said. Continued...
"One goal is to help these firms to delist and we can offer loans to entrepreneurs to buy back shares or we can work with them together to buy out their companies," she added.
Even after gaining 20 percent this year, the benchmark Shanghai Composite index .SSEC is down 64 from its October 2007 peak.
Jing Huang, managing director of Bain Capital, also said privatisation of listed Chinese firms provided a good investment opportunity. However, he warned many Chinese entrepreneurs disliked private equity investors interfering with their management and business.
Speaking at an industry forum on Tuesday, Sequoia's Shen and CICC's Chen said late this year or early next year may be the best time to start to make China deals when valuations settle down.
But they also said they would not invest in companies whose prices look "too cheap to be true".
"I always believe if a company offers you a price that is incredibly low, for instance, some companies that ask for price-earnings ratio of 4 times or even 3 times, there must be a reason behind that you probably don't know," said CICC's Chen.
"We are still in the financial crisis so we must be extremely cautious," she added. (Editing by Lincoln Feast)
Even BB throw, but current price is unreasonable.its' NVA 40cents.
to buy it means to buy cash!
current price is same as STI around 1800.
something crazy!
Year-on-year, the Group reported 3Q09 revenue decreasing by 49.3% or RMB505.5 million to RMB519.3 million compared with about RMB1,024.8 million in the same period last year. The significant fall in revenue was due to a sharp decline in the average selling prices (“ASPs”) of the Group’s nylon yarn products.
ASPs for the Group’s nylon yarn products have shown signs of recovery but we remain cautious, as we do not see significant improvements in the short to medium term. We maintain our hold call with a downward adjustment in our fair value estimate from 33 cents to 28.5 cents after reducing our forecasted revenue and expense figures.
I think they will stay put for now. It is no better up North as the glut of capital raising activities in HK is causing some indigestion. The latest financial report did indicate 'over capacity issues' and for which I have not read of any remedial measures being taken.
Regardless, shareholders should pay close attention on price movements on their S-Chip stocks. It won't be easy to delist unless they're blessed with cash.
SGX says Li Heng’s move to transfer main operations to new company and list in Hong Kong ‘does not comply with listing rules’
Li Heng Chemical Fibre Tech says it will not go ahead with its plans to transfer the group’s main operations to a new company (Newco) which it plans to list on the Stock Exchange of Hong Kong after SGX says the proposed transaction do not comply with the listing rules.
SGX says the move would “effectively result in the delisting of the existing business and assets of the company so that the company listed on SGX is completely hollowed out”.
“The company will be required to comply fully with all the provisions on voluntary delisting should it choose to proceed with the proposed transactions,” says the bourse operator.
Therefore, Li Heng, one of China’s leading manufacturers of high-end nylon fibres, says it will not be proceeding with the pooposed transactions in the current form. “The company will deliberate on the appropriate next steps and will consider other possible options to enhance shareholder value. The company will make the appropriate announcements in due course,” says Li Heng.
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