Shun Tak Holdings on Thursday completed the first convertible bond by an issuer with exposure to Hong Kong real estate in 16 months, attracting some demand because of a perceived scarcity value. The company also has real estate developments in Macau as well as other assets related to the tourism industry in the former Portuguese colony, including the main ferry service between Hong Kong and Macau, which means it offers an alternative way to play the casino boom without owning a gaming company.
Investors also liked the Hong Kong dollar-denominated CB because it was priced competitively. Some analysts estimated the theoretical value at above par, and those estimates were backed up by the fact that...
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