Tuesday, October 20, 2009

Hong Kong Stock Market Wrap Oct. 19th, 2009

IPO: China Longyuan Electric Power Group, a wholly owned subsidiary of China Guodian Corporation, plans to seek HK$7.8 billion on the Hong Kong bourse. The hearing for the listing is scheduled next Thursday. Morgan Stanley and UBS are the sponsors of Longyuan’s listing.

Bank of East Asia (23 HK) is rumoured to issue e a long-term US dollar hybrid bond which is worth of US$500 million to US$600 million (HK$3.9 billion to HK$4.7 billion) for fund raising, sources said. The lender confirms yesterday that it is considering the potential for fundraising exercise yet no draft has been made at this stage.

Bright Prosperous (723 HK) plans to place no more than 917.6 million shares at a price of 8.1 HK cents each, a 5.81 per cent discount of the closing price before its trading suspension. The company seeks HK$72 million for working capital. Trading will resume today.

Cheung Kong (1 HK) has confirmed that it has subscribed to the initial public offering of Evergrande Real Estate. Yet no figures has been disclosed yet.

Everbright Zhenjiang, (257 HK) a subsidiary of China Everbright International, has reached an agreement with Zhenjiang Management Bureau to develop a waste-to-energy plant in Zhenjiang. The company has a 30-year concession right to construct and operate the plant. The project will be worth of 413 million yuan.

China Merchants Bank (3968 HK) said more than 99 per cent of its shareholders have approved its rights issue plan of up to 22 billion yuan (HK$24.97 billion). The rights issue will take place in January next year.

CR Vanguard (291 HK), a subsidiary of China Resources Enterprise, has agreed to buy out stake in Zhuzhou Shenguo Tou Commercial Property for about 47 million yuan.

Freeman Corporation (279 HK) plans to place 39 million new shares through Get Nice Capital Limited at a price of HK$0.6 per share to raise HK$23.4 million. The proceeds will be used to repay the company’s debts.

Henderson Land (12 HK) said it has sold 250 units of the Changsha project for 100 million yuan. The price is set at 4000 yuan per square meter.

Hong Kong Energy (987 HK) has announced that it intends to introduce strategic investors. Yet no legally binding agreements or contracts have been signed at this stage. The company said it is considering the possibility of buying out assets from its parent.

Hua Yi Copper (559 HK) plans to offer shares in the proportion of two offer shares for every one share held by shareholders to raise HK$190 million. The share will be offered at a price of HK$0.15 each.

Global consumer goods exporter Li & Fung (494 HK) announced yesterday it will pay up to US$401.8 million (HK$3.134 billion) to buy US clothing business Wear Me Apparel. Li & Fung will settle the deal with internal cash reserves for a fixed amount of US$101.8 million, plus performance-based payments over the next five years of up to US$300 million. New York-based Wear Me Apparel holds licenses for top brands such as Calvin Klein, Timberland, US Polo, Disney, Marvel and Warner Brothers.

Sources said Huayangnian Property (1777 HK) plans to delay its listing plan which was originally scheduled this week. The developer said it takes longer because the Industrial and Commercial Bank of China (0349), Citigroup and Goldman Sachs would like to join as underwriters. The road show schedule has not confirmed yet.

Sino Land (83 HK) has beaten seven rivals to develop the Yuet Wah Street project in Kwun Tong, the Urban Renewal Authority said yesterday. The project can provide around 300 homes in 2014, market watchers forecast.

Yau Lee (406 HK) announced yesterday that it has acquired a property located at 18, Chi Kiang Street in Kowloon from Rich China Corporation Limited. The property is worth of HK$121.3 million, which is different from the previous valuation.

Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard