Haitong Securities tries to steal the limelight

China Outfitters gets a makeover

China Outfitters is an excellent example of how an attractive company can come back from a failed deal. The offering was covered at the time of writing and the issuer closed the books for its IPO on December 2 on decent demand. read

Planning for block trades in Sun Art Retail

HONG KONG (Dow Jones Investment Banker) – In sharp contrast to most other IPOs in Hong Kong this year, and as smaller competitor Beijing Jingkelong Co Ltd has just had its application for a listing in Shanghai rejected by China’s Securities Regulatory Commission (CSRC), mainland hypermarket operator Sun Art Retail Group Limited has posted a 26% gain since its US$1.1 billion IPO last July. Nine blue-chip cornerstone investors came in at the time of the offering for a combined US$420 million. Some of these may now perhaps consider exiting, and locking in capital gains after the expiry of their lock-ups early next year. We look at the stock’s valuation and liquidity, and at which firms might best be positioned to print a trade. read

Reading the Tenfu tea leaves

HONG KONG (Dow Jones Investment Banker) – Amid the largest drop for a month in the Hang Seng index, Tenfu (Cayman) Holdings Company Limited, a producer and retailer of tea products in China, has just started bookbuilding for its Hong Kong IPO of up to US$182 million. The deal, set to price on September 20, with listing on the 26th, is led by China International Capital Corp. (CICC), Credit Suisse, and Taiwan’s Polaris Securities.

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A hot time in the Citic

Citic Securities formally started book building for its US$2 billion Hong Kong float on Friday.  This is a marquee deal likely to generate a lot of interest. Investors have made a pile of money participating in IPOs of mainland financial institutions, and there is hope Citic can repeat that magic despite the challenging market conditions.

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South China Morning Post opinion article

The market rout and volatility in Asia, and around the world, is likely to lead to an increasing number of cornerstone tranches in IPOs. Very much a feature of new listings in Hong Kong and, to a lesser extent, Singapore, cornerstone investors are large institutions that commit in advance to buying a fixed, pre-agreed allocation in a transaction.

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Beijing Jingneng tries to energize IPO investors

HONG KONG (Dow Jones Investment Banker) – Amid particularly choppy primary equity markets, Beijing Jingneng Clean Energy Co., Ltd. is attempting to raise up to US$630 million in an IPO in Hong Kong; to succeed, the deal may need to be cut back.

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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.

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The double edge of Glencore’s cornerstones

The total number of shares subscribed for by cornerstone investors in Glencore’s IPO, which is targeting proceeds of about US$10 billion (excluding a 10% over-allotment option), is expected to represent approximately 31% of the global offer, assuming the overallotment option is not exercised. The US$3.1 billion tranche therefore represents one of the largest cornerstone books by value ever achieved for an IPO. But there are consequences to the practice, which could come back and haunt the issuer as well as other investors in the company. read

HPH Trust kicks-off bookbuilding

As previously reported on this blog, Hutchison Ports Holdings Trust (HPH Trust) kicked-off yesterday the institutional bookbuilding process for its multi billion-dollar business trust IPO in Singapore. The preliminary prospectus posted on the Monetary Authority of Singapore’s OPERA website includes interesting features, which are highlighted below.  read