Yongle listed twists and turns: the value of M & A is the risk of expansion
Yongle electrical
Listing
Plan was finally coming into fruition. October 7, Paradise (0503.HK) offering subscription come to an end, will be Oct. 14 at the Hong Kong Stock Exchange trading formally.
Scheduled for Oct. 8 to determine the final issue price yet to be finalized, may be delayed to the last period (12) OK.
Rumors that Paradise will be released price of 2.25 Hong Kong dollars,
Financing
1.026 billion Hong Kong dollars.
10 4 day after the IPO, subject to the impact of stock prices in Hong Kong,
Investment
Subscription reactions were cold from the heat, more retail temporary "pumping flying (temporary withdrawals)."
Market forecast, the public offering of part of the Paradise is only about 20 times -30 times subscribed, the International Placing will be more than 10 times subscribed, well below previous expectations of Yongle (more than hundred times).
However, Wing-lok,
States United States
Electrical chain model recently raised widespread doubts, clearly affected the Yongle's prospectus.
Although the English name of Paradise as "Paradise" (PARADISE), but many funding agencies are skeptical of the Paradise, not the beginning of their flat roads listed.
From got up early, catch up later set
As in the "quiet period" Chen Xiao, chairman of Paradise is no longer open to be interviewed. Paradise will be given the right of its news release of the Strategic Financial in Hong Kong
PR
Consultants Limited.
"Paradise is a good start listing, the listing process does seem to be twists and turns back." Strategic Financial news director Chen Yi Quan admitted.
Relative to the States United States
Suning
Other peers, the Yongle listed more than a year late, but when Yongle was planning a long listing.
2003, the Yongle its
Strategy
Partner?? Morgan Stanley negotiations. And Morgan Stanley more than a year of bargaining, appears to delay the Yongle's listing. July 2004, Gome, Suning has in Hong Kong, Shenzhen market, Yongle marked a step slow.
Because the domestic market will take a very long "queue time" and the limited amount of funds collected, Yongle the start sights overseas.
More than a year of negotiations and the
Business
Approval of the Ministry, in January this year, the first time publicly admitted Paradise: Morgan Stanley invested 50 million U.S. dollars and set up Yongle Yongle Hong Kong companies, and has 20% stake in Yongle.
News that Morgan Stanley has been in negotiations with the Paradise promised within a year will not transfer its own shares in Paradise, and to assist in Paradise before the end of 2005 simultaneous listing in Hong Kong and the United States. However, the U.S. listing of the operation difficult, it was soon shelved, while Hong Kong-listed on the agenda.
Since then, various versions of Yongle listing has proclaimed. Paradise financing for the scale is different opinions, one billion U.S. dollars, 20 billion, there are two or three billion dollars. As with the Morgan Stanley signed a confidentiality agreement, Chen Xiao repeatedly denied that the forthcoming Paradise
Overseas Listing
News, or even give up the overseas market once heard to say Paradise.
Wing-lok and Morgan Stanley have not give up, despite repeatedly delayed time to market. Yi-Quan said: "In fact, Paradise has been listed in the search for the best time, '11' during the electrical hot is a good time."
Yet analysts pointed out that, in addition to domestic and foreign
Capital
Expansion of the market valuation of different industries, the Wing-lok, listed in Hong Kong is in a special period. As the overseas capital market is still some room for the yuan's appreciation is expected, making it much less outside funding than the original.
Amount may be reduced even if the financing, but the pace of listing has not stopped. Success in the September 11 hearing by the Stock Exchange of Hong Kong, Hong Kong-listed China Paradise has finally opened the door.
Miss the best time?
Although listed last the door opened, but the market analysis, Yongle missed the best time to market.
Yi-chuen, said the end of Paradise on October 7 the subscription, the subscription rate is indeed lower than expected, but mainly due to the overall downturn of the Hong Kong stock market.
However, Southwest Securities analyst Zhou Xingzheng Hong Kong stocks do not agree this statement. Zhou said that despite the poor performance of the Hong Kong stock market during the National Day, but the year listed Yurun Food (1068.HK) has won 155 times oversubscribed, the bank's subscription and distribution are also very keen.
"Paradise of the Subscription lower electric chain industry itself should be a problem.
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