equity-investors-still-highly-focused-on-price

Equity investors still highly focused on price

Shun Tak Holdings prices its $220 million placement at a 3.6% discount, while Xinyi Glass has to offer a 9% discount to get its $231 million offer out the door.
September 27, 2007
The capital markets in Hong Kong continue to gain pace with two more companies raising fresh capital from equity placements yesterday û a day which also saw the Hang Seng Index push above 27,000 points for the first time.

The strong momentum in the secondary market no doubt played a role in the timing of both deals, but the outcome ended up being quite different largely because of how these two stocks have performed so far this year. It was a clear sign that investors are still price sensitive when it comes to follow-on issues and block trades.

Shun Tak Holdings, which raised HK$1.72 billion $220 million with the help of CLSA, attracted...
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