Chaoda Modern Agriculture has raised HK$402 million $51 million from a placement of new shares, becoming only the second Hong Kong-listed company to raise fresh capital through a follow-on equity sale this year.
While quite small in absolute terms, the UBS-led placement represented about 10 days worth of trading volume, which is not insignificant in a market where investors continue to favour liquid stocks, mindful that they need to be able to get out should the market suddenly take a turn for the worse. The fact that the Chaoda placement was multiple times covered is therefore quite encouraging and suggests that investors can be convinced to look at stocks outside the major blue-chips....
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