Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China CITIC Financial Asset Management / Event-Driven

China CITIC Financial Asset Management (2799 HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-huarong-asset-management" target="_blank" data-smartkarma-citation="entities:968:1" rel="noopener">China Huarong Asset Management (2799 HK)</a>, which is expected to be in contravention of Hong Kong's public float, is contemplating the "full circulation" of some domestic shares. </li>
<li>If implemented, the conversion of these domestic shares would be largely ceremonial.</li>
<li>To date, 28 companies have sought approval to convert their domestic shares and/or unlisted foreign shares into H shares on the Hong Kong exchange. </li>
</ul>



China Huarong Asset Management (2799 HK), which is expected to be in contravention of Hong Kong's public float, is contemplating the "full circulation" of some domestic shares. 
If implemented, the conversion of these domestic shares would be largely ceremonial.
To date, 28 companies have sought approval to convert their domestic shares and/or unlisted foreign shares into H shares on the Hong Kong exchange. 


China Huarong (2799 HK)'s Full Circulation

<div>
<p data-v-da61000a="" data-v-294dc056="">This is the latest update in a series dating back to <em><a href="https://skr.ma/c7hcH" target="_blank" rel="noopener">Legend's Conversion of Domestic Shares</a></em> in June 2018.</p>
</div>
<div>
<p data-v-da61000a="" data-v-294dc056="">To date, 28 companies have sought approval to convert their domestic shares and/or unlisted foreign shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.</p>
</div>
<div>
<p data-v-da61000a="" data-v-294dc056="">16 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Five of those have seen various degrees of movement in the converted shares.</p>
<p data-v-da61000a="" data-v-294dc056=""><a href="https://www.smartkarma.com/entities/sichuan-languang-justbon-service-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:28337:1" rel="noopener">Sichuan Languang Justbon Service Group (2606 HK)</a> received approval late last year but did not convert - and was subsequently subject to an Offer. </p>
</div>
<div>
<p data-v-da61000a="" data-v-294dc056="">To date, two companies have withdrawn their application to convert their domestic shares.  Both of these companies have now been subject to Offers.</p>
</div>
<div>
<p data-v-da61000a="" data-v-294dc056="">As always, more below the fold. </p>
</div>


This is the latest update in a series dating back to Legend's Conversion of Domestic Shares in June 2018.


To date, 28 companies have sought approval to convert their domestic shares and/or unlisted foreign shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.


16 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Five of those have seen various degrees of movement in the converted shares.
Sichuan Languang Justbon Service Group (2606 HK) received approval late last year but did not convert - and was subsequently subject to an Offer. 


To date, two companies have withdrawn their application to convert their domestic shares.  Both of these companies have now been subject to Offers.


As always, more below the fold. 


Full Circulation Of H-Shares: July 2021 Update

<div>
<p data-v-da61000a="" data-v-294dc056="">This update is the latest in a series dating back to <a href="https://skr.ma/c7hcH" target="_blank" rel="noopener">L<em>egend's Conversion of Domestic Shares</em></a> in June 2018.</p>
<p data-v-da61000a="" data-v-294dc056="">To date, 20 companies have sought approval to convert their domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.</p>
<p data-v-da61000a="" data-v-294dc056="">13 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Only two of those have seen any noticeable movement in the converted shares.</p>
<p data-v-da61000a="" data-v-294dc056="">In the past four months, two companies have <em>withdrawn</em> their application to convert their domestic shares, citing further improvement in the rules and regulations of the domestic capital market, among other factors.  </p>
</div>
<div>
<p data-v-da61000a="" data-v-294dc056="">As always, more below the fold. </p>
</div>


This update is the latest in a series dating back to Legend's Conversion of Domestic Shares in June 2018.
To date, 20 companies have sought approval to convert their domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.
13 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Only two of those have seen any noticeable movement in the converted shares.
In the past four months, two companies have withdrawn their application to convert their domestic shares, citing further improvement in the rules and regulations of the domestic capital market, among other factors.  


As always, more below the fold. 


Full Circulation Of H-Shares: January 2021 Update

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

HBM Holdings Limited / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/harbour-biomed-holdings-limited" target="_blank" data-smartkarma-citation="entities:29717:1" rel="noopener">Harbour Biomed (2142 HK)</a> is a biopharmaceutical company with a focus on discovering, developing and commercialising differentiated antibody therapeutics in immunology and oncology disease areas. Harbour has launched a Hong Kong IPO to raise net proceeds of HK$1,589.5 million ($205 million) at the mid-point of the IPO price range of HK$11.70-12.92 per share.</p></div><div><p>Nine cornerstone investors have agreed to invest about $92 million in the IPO (41.92% of the offer shares at the mid-point of the IPO price range). Cornerstone investors include BlackRock, <a href="https://www.smartkarma.com/entities/hbm-healthcare-investments-ag" target="_blank" data-smartkarma-citation="entities:22373:1" rel="noopener">Hbm Healthcare Investments Ag (HBMN SW)</a>, Hillhouse Capital, Hudson Bay Capital, Octagon Capital, Anlan Fund, <a href="https://www.smartkarma.com/entities/legend-holdings-corp-h" target="_blank" data-smartkarma-citation="entities:517:1" rel="noopener">Legend Holdings Corp H (3396 HK)</a>, OrbiMed and 3W.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/hbm-holdings-harbour-biomed-ipo-initiation-making-resistance-futile" target="_blank" data-smartkarma-citation="insights:45740" rel="noopener">HBM Holdings (Harbour Biomed) IPO Initiation: Making Resistance Futile</a>, we stated that the prospects of Harbour’s core drug assets are favourable. Overall, a strong cornerstone investor lineup and our valuation analysis suggest that the IPO price range is attractive. </p></div></div></div>

Harbour Biomed (2142 HK) is a biopharmaceutical company with a focus on discovering, developing and commercialising differentiated antibody therapeutics in immunology and oncology disease areas. Harbour has launched a Hong Kong IPO to raise net proceeds of HK$1,589.5 million ($205 million) at the mid-point of the IPO price range of HK$11.70-12.92 per share.Nine cornerstone investors have agreed to invest about $92 million in the IPO (41.92% of the offer shares at the mid-point of the IPO price range). Cornerstone investors include BlackRock, Hbm Healthcare Investments Ag (HBMN SW), Hillhouse Capital, Hudson Bay Capital, Octagon Capital, Anlan Fund, Legend Holdings Corp H (3396 HK), OrbiMed and 3W.In HBM Holdings (Harbour Biomed) IPO Initiation: Making Resistance Futile, we stated that the prospects of Harbour’s core drug assets are favourable. Overall, a strong cornerstone investor lineup and our valuation analysis suggest that the IPO price range is attractive. 

HBM Holdings (Harbour Biomed) IPO: Valuation Insights

<p><a href="https://www.smartkarma.com/entities/car-inc" target="_blank" data-smartkarma-citation="entities:942:1" rel="noopener">Car Inc (699 HK)</a> provides car rental services, including car rentals and fleet rentals in China. Late on Friday night, CAR announced a pre-conditional voluntary cash offer from Indigo Glamour, which is wholly-owned by MBK Partners. Indigo Glamour will offer HK$4.00 in cash per share which is a 17.99% premium to the last close price of HK$3.39 per share. The offer is not entirely unexpected as on 20 August, a Reuters article claimed that a consortium led by MBK Partners is seeking to privatise CAR.</p><div class="content-highlight"><p>The pre-conditions which can be waived by the offeror are PRC antitrust approval and necessary consents/waivers from lenders. The key condition precedent is that offeror receives enough acceptances to hold more than 50% of the voting interest. Post-completion of the UCAR share sale and including the irrevocable from <a href="https://www.smartkarma.com/entities/legend-holdings-corp-h" target="_blank" data-smartkarma-citation="entities:517:1" rel="noopener">Legend Holdings Corp H (3396 HK)</a>, the offeror will own 47.41% of the outstanding shares. In combination with a reasonable offer price, we think that offer will garner enough acceptances to comfortably cross the 50% voting interest threshold to become unconditional. </p></div>

Car Inc (699 HK) provides car rental services, including car rentals and fleet rentals in China. Late on Friday night, CAR announced a pre-conditional voluntary cash offer from Indigo Glamour, which is wholly-owned by MBK Partners. Indigo Glamour will offer HK$4.00 in cash per share which is a 17.99% premium to the last close price of HK$3.39 per share. The offer is not entirely unexpected as on 20 August, a Reuters article claimed that a consortium led by MBK Partners is seeking to privatise CAR.The pre-conditions which can be waived by the offeror are PRC antitrust approval and necessary consents/waivers from lenders. The key condition precedent is that offeror receives enough acceptances to hold more than 50% of the voting interest. Post-completion of the UCAR share sale and including the irrevocable from Legend Holdings Corp H (3396 HK), the offeror will own 47.41% of the outstanding shares. In combination with a reasonable offer price, we think that offer will garner enough acceptances to comfortably cross the 50% voting interest threshold to become unconditional. 

CAR Inc’s Conditional VGO from MBK Partners

China

Legend Holdings is a diversified investment holding group operating through two main segments: Diversified-industries Operation and Industrial Incubations and Investments. Its strategic investments span IT, financial services, innovative consumption and services, agriculture and food, and advanced manufacturing and new materials, while its financial investments cover angel, venture capital, and private equity. The company was founded in 1984 and is headquartered in Beijing, China.

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Legend Holdings (3396 HK)

China Huarong (2799 HK)'s Full Circulation

China Huarong Asset Management, which is expected to be in breach of Hong Kong's public float, is contemplating "full circulation" of some domestic...

David Blennerhassett

Full Circulation Of H-Shares: July 2021 Update

CSRC circulation approval is an endorsement of the existing internal framework of the company. There also does appear to be some degree of...

David Blennerhassett

Full Circulation Of H-Shares: January 2021 Update

To date, 20 companies have sought approval to convert their domestic shares into H shares, 13 of which have now been given CSRC and Hong Kong...

David Blennerhassett

HBM Holdings (Harbour Biomed) IPO: Valuation Insights

Harbour has launched an HK IPO to raise net proceeds of $205 million at the mid-point of the price range. Overall, strong cornerstones and our...

Arun George

CAR Inc’s Conditional VGO from MBK Partners

CAR announced a pre-conditional voluntary cash offer at HK$4.00 in cash per share. Overall, we think that offer will garner enough acceptances to...

Arun George

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