In today’s briefing:
- VCredit (2003 HK): Offer Now Open. IFA Says Not Fair. Not Even Close
- GJS/Haitong Merger: One Formality Reg To Go
- Wuxi XDC Placement – A Repeat of Biologics Placement Saga, Last Deal Did Well
- Technically Speaking, Breakouts and Breakdowns: HONG KONG (January 6)
- Asia Real Estate Tracker (10-Jan-2025): Gordon Tang raises bid for Suntec REIT.
- ‘Colorful’ 2024 For Cambodia In Rubber, Tire Sectors
- Lucror Analytics – Morning Views Asia
- LXJ International Holdings Pre-IPO Tearsheet
- Geovis Insighter’s IPO Lifts Off in Style After Chang Guang Satellite’s Listing Crash
VCredit (2003 HK): Offer Now Open. IFA Says Not Fair. Not Even Close
- Back on the 20 December, VCredit Holdings (2003 HK), a provider of consumer financial services in China, announced a unconditional MGO from Ma Ting Hung, VCredit’s chairman. and concert parties.
- The catch? The Offer Price of HK$1.80/share was a 9.09% discount to undisturbed. It will not be increased.
- VCredit’s Composite Doc is now out, with the Offer open for tendering, with a 3rd February first close. The IFA says “not fair and not reasonable“. Trading 45% through terms.
GJS/Haitong Merger: One Formality Reg To Go
- Back on the 9th October, China’s leading state-backed brokerages Guotai Junan Securities (2611 HK) (GJS) and Haitong Securities (6837 HK) announced a scrip merger, with GJS the surviving entity.
- Barring a China Traditional Chinese Medicine (570 HK)-like obstacle/debacle, this transaction was a wrap. Fortunately, key regulatory approvals (SAMR and SASAC) have been ticked off.
- Approval from the Shanghai Stock Exchange was secured overnight. That was a formality. One approval remains – CSRC. Expect that condition to be satisfied shortly. GJS is no longer shortable.
Wuxi XDC Placement – A Repeat of Biologics Placement Saga, Last Deal Did Well
- WuXi AppTec (2359 HK) aims to raise around US$150m via selling around 3% stake in WuXi XDC Cayman (2268 HK).
- WuXi XDC Cayman (WXDC) is a contract research, development, and manufacturing organization (CRDMO) focused on the global antibody drug conjugates (ADC) and broader bioconjugate market providing integrated and end-to-end services.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Technically Speaking, Breakouts and Breakdowns: HONG KONG (January 6)
- Mainland investors continue their record southbound purchases during 2024 and into 2025.
- GDS Holdings (9698 HK) , GDS Holdings (ADR) (GDS US) had a break out from its triangle formation in its continuation pattern. The company may list its China REIT assets.
- Tencent (700 HK) had a symmetrical pattern breakdown after the announcement that the US pentagon had placed the company on its blacklist. The company began a large share buyback.
Asia Real Estate Tracker (10-Jan-2025): Gordon Tang raises bid for Suntec REIT.
- Gordon Tang increases buyout offer for Suntec REIT in response to investor dissatisfaction with original bid.
- Texas teachers ramp up real estate investments, committing 61% more funds totaling $1.6 billion by 2024.
- The Cheng family of Hong Kong faces challenges as an Australian casino operator experiences a cash shortage, impacting their holdings.
‘Colorful’ 2024 For Cambodia In Rubber, Tire Sectors
- Highlights · Set to finish 2024 with a 30% rise in rubber sale values YoY · Exports tires worth US$772.5 million during Jan-Nov 2024 · Minister charts course of action for 2025 Cambodia has made impressive strides in 2024, fueled by higher global rubber prices and exceptional progress in its burgeoning tire production and export industry, marking a pivotal step in its transformation into a key player in the global rubber value chain.
- The Southeast Asian kingdom earned US$472 million from exports of NR latex during January-October 2024, up 22.5% over the same period the previous year.
- On the other hand, it gained US$568 million from exports of the product during January-November 2024, up 26.7% over the same period in 2023.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Shui On Land, Country Garden
- In the US, the UST curve bull flattened slightly in a shortened trading session. The yield on the 2Y UST fell 2 bps to 4.27%, while that on the 10Y UST was unchanged at 4.69%.
- The US equity market was closed yesterday, in observance of the national day of mourning for former president Jimmy Carter.
LXJ International Holdings Pre-IPO Tearsheet
- LXJ International Holdings (LXJ HK) is looking to raise atleast US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC and Haitong.
- LXJ International Holdings Limited (LXJIH) is a Chinese-style QSR brand having a chain of fast food restaurants in China.
- It was ranked first in the Chinese-style QSR industry in China by GMV in 2023, according to CIC, making it the largest Chinese-style QSR brand in China.
Geovis Insighter’s IPO Lifts Off in Style After Chang Guang Satellite’s Listing Crash
- Geovis Insighter Technology Co Ltd, the first commercial aerospace company to list on the Beijing Stock Exchange, achieved a successful IPO with a surge of 407.23% on its debut, in contrast to the recent failed listing attempt by another Chinese satellite company.
Established in 2016, state-backed Geovis Insighter specializes in integrated solutions for spacecraft measurement, control management and aerospace digital simulation. The company’s stock was first listed on China’s New Third Board in February 2023.
Its price fell 17.6% Monday, leaving the company with a total market value of 4.3 billion yuan ($587 million), surpassing the required 200-million-yuan threshold.
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