Espinasse on HK Electric Investments
I was back in CNBC’s Hong Kong studio this morning to comment on “The Call” hosted by Bernie Lo, on Hong Kong Electric Investments’ IPO trading debut on HKEx. read
Tag: Over-allotment options
PICC launches US$3.6 billion Hong Kong IPO
PICC Group will finally kick off bookbuilding tomorrow, Thursday 22 November, for an IPO that could reach US$3.6 billion, and even top US$4 billion, assuming exercise in full of the over-allotment option. This would make it the largest IPO so far this year in Asia ex-Japan, ahead of the flotation of Felda Global Ventures in Malaysia. read
The enduring mystery of IPO pricing
In 2004, Google came to market with an IPO. The company took an unconventional approach to pricing. It put its offer to all investors through an open, Dutch auction. All investors, whether individuals or institutions, were asked to submit orders. The deal was then priced at exactly the level required to sell all shares at the highest possible valuation. read
China Shipping Nauticgreen’s Chinese box surprise
HONG KONG (Dow Jones Investment Banker) – China Shipping Nauticgreen Holdings Company Limited (CSN) has just started bookbuilding for a proposed IPO of up to US$192 million in Hong Kong, led by Deutsche Bank and China Merchants Securities. Pricing is set for August 10. Less volatile than that of shipping lines, the business is expected to grow, thanks in part to a substantial newbuild ship overcapacity over the next couple of years which should drive freight prices down. With a likely single digit P/E, valuation is reasonable too – a welcome change from some recent Hong Kong offerings.
An unwelcome spotlight on the Greenshoe
HONG KONG (Dow Jones Investment Banker) – The greenshoe may find itself in the spotlight as institutional shareholders and governments agitate over fairness and fees. This would be an unwelcome development for investment banks.
General Motors’ IPO becomes the world’s largest-ever
General Motors Company (GM) announced on 26 November 2010 that the value of both the common and preferred stock sold in its IPO by its selling shareholders, including the US Department of the Treasury, reached US$23.1 billion, following the exercise of the over-allotment options under both offerings. read