Weiqiao Textile brings follow-on offering

Decent demand suggests textile trade dispute no longer an issue.
March 02, 2006
Hong Kong-listed Weiqiao Textile has taken advantage of a 12-month high in its share price to raise HK$830.2 million $107 million from the sale of new H shares, which it will use to expand its production capacity of denim.

While there was no shortage of demand, investors seemed a bit wary of the price, and the Morgan Stanley-led sale was completed at the bottom end of the price range at a 5.5% discount to the rate at which the stock was suspended yesterday. WeiqiaoÆs shares currently trade at about 10 times forward earnings, which compares with 15 times and 10.8 times for fabric and garment manufacturerers Texwinca and Fountain Set, respectively. Both these...
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