And Now, a Szechwan Offering

Ho hum, another global offering? Well, maybe not. This offering is a little spicy if only because it comes from The People’s Republic of China (“PRC”) via Hong Kong. The offering fever has spread to the Far East. Otherwise, this offering is not too different from some of the others we have seen and reviewed in Marine Money . Most of these global offerings, particularly stock offerings can be looked at positively. They all have similar features and results. They create a quick shot in the arm to the enterprise’s balance sheet by providing needed working capital, capital to buy or build vessels, or capital to reduce debt loads. They also dilute the current shareholders’ ownership percentage and provide the ever eager investment community with another game to play. Of course, we shouldn’t forget how it helps world economies by providing underwriters, lawyers and accountants with ample chances to increase their cash flows.

Jinhui Shipping and Transportation Limited (“Shipping Group”) is the entity making the offering. One might not consider Jinhui to be a Far East or Chinese company because it was incorporated in Bermuda in May of 1994, but for sure it can be considered Far Eastern as its parent company is Jinhui Holdings (“Holdings”), a company incorporated in Hong Kong and listed on the Hong Kong Stock Exchange. The operations of both the Shipping Group and the parent company are predominantly in the PRC and South East Asia.

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