Stocks News
- Haitong completes share placement
Date: 22-Nov-2007 Sources: (Shenzhen Daily)
HAITONG Securities, China's third-largest listed brokerage, said yesterday it has raised the 26 billion yuan (US$3.50 billion) it targeted from a placement of shares with 10 domestic institutions.
In a filing with the Shanghai Stock Exchange, Haitong said it had issued 724.64 million shares at 35.88 yuan each, a 38 percent discount to its closing price of 58.34 yuan per share Tuesday.
The 10 subscribers include Youngor, China International Trust and Investment Corp. and a number of other financial institutions, the statement said, adding that the new shares were subject to a lockup period of at least 12 months.
Haitong would use proceeds raised from the share placement to boost its capital for expansion in China's fast-growing capital markets next year, its president Li Mingshan said Tuesday.
'We received more interest than we expected from various potential investors so the price was settled at more than 35 yuan per share,'Li said on the sidelines of a news conference announcing a co-branded debit card issued with Bank of Communications.
Li also said that the company had applied to the China Securities Regulatory Commission to invest clients' money in overseas financial markets under the country's Qualified Domestic Institutional Investor (QDII) program.
However, the launch of Haitong's first QDII product might be delayed due partly to recent fluctuations in global markets amid concerns about the U.S. subprime mortgage crisis, said Chen Chunqian, a Haitong sales official.
'The fluctuations in global markets are becoming more and more severe and we're monitoring overseas markets very closely,'said Chen.
Chen added that Haitong had to explore new businesses such as QDII funds and stock index futures to expand its sources of profit.
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