Bad-debt IPO set to raise billions
China Cinda Asset Management Co., Ltd. announced on Wednesday that it will launch an initial public offering (IPO) in Hong Kong on Thursday.
With a planned issuance of 5.32 billion H-shares, the company has set a range of 3 HK dollars and 3.58 HK dollars per share, it said in a press release.
Cinda expects to raise 16.97 billion HK Dollars (2.19 billion U.S. dollars) if an over-allotment option is not exercised during the IPO. Shares of the company will be listed on Dec. 12 on the main board of the Hong Kong Stock Exchange.
The listing marked a first of its kind for state-owned Chinese financial assets management companies. Cinda, as one of the four Chinese financial asset management firms, was restructured as a joint stock company in June 2010 under approval by the State Council, China's cabinet.
Businesses of the firm include collecting banks' bad debts, bankruptcy management, outbound investment, securities trading, investment and financial risk counseling.
The company said that the funds raised through the IPO will are intended to replenish its capital, 60 percent of which will be used to develop its core business of bad asset management, with the remainder to be used as capital injection to subsidiary companies and financial investment and asset management.
Cinda shares selling like hot cakes
Chinese bad-debt manager Cinda's Hong Kong IPO has successfully taken center stage in Hong Kong's investment circles.
After a hot roadshow on Monday, stories flooded local business sections on Tuesday with details of the Cinda's IPO, which is expected to be the largest this year in Hong Kong, which just lost Alibaba Group Holding Co Ltd, China's biggest e-commerce company. >>>More
Cinda IPO set to raise $2.5 billion
China Cinda Asset Management Co got a hot response from investors in a roadshow on Monday for a Hong Kong IPO that is expected to raise up to $2.5 billion.
Cinda has lined up 10 cornerstone investors in its 5.3-billion-share offering, setting a range of HK$3 (39 US cents) to HK$3.58 per share. If it activates the 15 percent greenshoe option, total funds raised could reach HK$21.9 billion. >>>More
Global investors keen on Cinda IPO
China Cinda Asset Management Co lifted the lid on how the country turns bad loans from its banks into profits, issuing a prospectus yesterday for an initial public offering that has reeled in some of the world's biggest investors.
The IPO is set to be the largest in Hong Kong this year as sovereign wealth funds join hedge funds in betting that soured loans will be a growth business in China's slowing economy. >>>More
Cinda says assets, profit are rising ahead of HK IPO
China Cinda Asset Management Co Ltd, the first of the four to launch an IPO, said in a statement filed on the Hong Kong Stock Exchange that total assets rose 11 percent to 283.55 billion yuan ($46.5 billion) as of June 30, compared to the end of December last year.
The offering is set to be the biggest in Hong Kong this year as global investors bet that soured loans will be a growth business in China.
It opens a window into how the four firms have managed loans, investments and properties seized from companies unable to repay their lenders as the world's second-largest economy slowed. >>>More
Norway SWF to buy over $1b into China's Cinda
A group of 10 investors, including Norway's sovereign wealth fund and Och-Ziff Capital Management Group LLC, have together committed to buy about $1.1 billion into China Cinda Asset Management Corp as part of its Hong Kong IPO, people familiar with the matter said on Sunday.
Norges Bank Investment Management, the world's biggest sovereign wealth fund, has pledged about $150 million to the IPO, making its biggest ever cornerstone commitment. >>>More
