Yangzijiang taps Taiwanese Equity

Yangzijiang Shipbuilding is one step closer to the listing of its Taiwan Depository Receipts (“TDRs”) by September this year. The largest private Chinese shipbuilder, which is already listed on the Singapore Exchange, has received all the necessary approvals from Taiwan and has made an application to the Singapore Exchange. Pending approval, it will be the first Singapore listed company to list TDRs in Taiwan. Yangzijiang Shipbuilding hopes to list up to 120 million TDR shares, comprising 100 million new shares and 20 million vendor shares with the objective to boost its existing share valuation and raise more funds for potential acqusitions. Continue Reading

More Rights Issues in the Works?

It is the time of the year when most companies in Singapore will be holding their Annual General Meetings. This year, more companies are expected to put forward “blank cheque” resolutions to raise money by selling more shares, encouraged by the revisions in Singapore Exchange (“SGX”) listing rules.

In February 2009, SGX increased the limit to allow a listed issuer to seek a general mandate from shareholders for issuance of new shares on a pro-rata basis up to 100% of its issued share capital, vis-à-vis the 50% limit previously. The stock exchange believes that concerns over dilution of minority shareholders’ interests are mitigated in a pro-rata renounceable rights issue as all shareholders have equal opportunities to participate and can dispose their entitlements through trading of nil-paid rights if they do not wish to subscribe for their rights shares. Continue Reading

Game Changers?

In their 4th quarter earnings release, Golden Ocean Group Limited announced that its application for a secondary listing in Singapore had been approved by the Singapore Exchange (“SGX”). The company already has an operational presence in Asia and saw the opportunity offered by the July 2009 Memorandum of Understanding between SGX and the Oslo Bors (“OSE”), which facilitated a simplified and accelerated dual listing process between the exchanges. This will be the first secondary listing by a Norwegian firm under the new accords.

From our perspective, this is an interesting transaction. Not only is this an example of a western company seeking equity capital in the East, it also raises the question of whether the market would follow the trendsetter, John Fredriksen, who was the first to bring his company to the U.S markets. The successful listing of Golden Ocean will blaze the trail for more to follow and strengthen Singapore’s position as a maritime and financial hub. Continue Reading

Game Changer?

In their 4th quarter earnings release, Golden Ocean Group Limited announced that it had begun the process of pursuing a secondary listing in Singapore with the goal of accessing the growing Asian investor market. The company already has an operational presence in Asia and saw the opportunity offered by the July 2009 Memorandum of Understanding between the Singapore Exchange (“SGX”) and the Oslo Bors, which facilitated a simplified and accelerated dual listing process between the exchanges.

Our Singapore correspondent, Rodricks Wong, highlighted the significance of this transaction from the Asian perspective:
Continue Reading

Wikborg Rein Sees More Listings in Singapore

Last week, Wikborg Rein provided an outlook for listings in Singapore in 2010. The Norwegian law firm pointed out that a large part of market capitalisation has been eroded by the privatisation of several listed companies but it expects to see a greater number of listing candidates, both in primary and secondary in Singapore this year. In view of the Memorandum of Understanding (MoU) signed between Singapore Exchange (“SGX”) and Oslo Børs on 8 July 2009 to promote dual listings on the two markets and an improving global economic outlook, Wikborg Rein believes that secondary listings of Oslo-listed companies will re­ceive increased attention.

For those IPO aspirants, Wikborg Rein has the following advice.

-          Companies contemplating primary lis­tings on the SGX should commence the process sooner rather than later due to the proposed changes to the listing rules in Sin­gapore which will, inter alia, tighten the admission requirements and raise the minimum issue price. In this regard, timing is the key for any company which wishes to list on the SGX – the candidate should either decide to do so quickly before the changes take place, or wait until the new regime is in place. Continue Reading

Navigating Rough Waters: Survival Today, Success Tomorrow

Did you know…

·       Half of shipping bankers answering a survey last week would be comfortable financing a newbuild tanker…but 0% would be comfortable with a newbuild containership,

·       70% of these bankers expect shipping loan spreads to average over 300 basis points going forward…more than a third of these expect spreads to average over 400 basis points,

·       88% typically rely on LTV covenants – and half anticipate taking write-offs in 2009? Continue Reading