Singapore Exchange News

China Taisan Prices TDRs At NT$12.15 Apiece
China Taisan Technology Group Holdings has priced its Taiwan Depository Receipts (TDRs) at NT$12.15 apiece, against an indicative range of NT$10-NT$12.50 provided earlier. The TDR issue price of $0.51 is at a 10.05% premium to the weighted average price of about $0.232 for trades done on the SGX during book-building duration from 23 Sep to 28 Sep-10. As each TDR represents two ordinary shares, the issue translates to 250m ordinary shares, half of which are new units from the company and half are existing units from the company’s non-executive chairman. Of the 125m TDRs, about 101m TDRs would be offered through private placement, while 11.3m TDRs would be offered for public subscription. TDRs are expected to be listed on the Taiwan Stock Exchange on 6 Oct-10.

Significance: Textile companies listed on the TSE generally have higher valuations compared to peers in Hong Kong and Singapore. Also, proceeds from the dual-listing would be used to fund capacity expansion by 50% to 36,000 tonnes by fiscal 2012 and spur China Taisan’s next phase of growth and ultimately bring more value to the shareholders.

Yamada Green Resources Eyes Listing On SGX Mainboard
China-based shiitake mushroom grower, Yamada Green Resources has launched its initial public offering of 105m shares for Singapore Exchange (SGX) mainboard listing. The offer comprises 74.91m new shares at $0.22 each and seeks to raise net proceeds of $13.8m – and 30.09m vendor shares. Of the invitation shares, 2m are for public offer and 103m for placement. Yamada is one of the largest shiitake mushroom producers and cultivation base operators in China’s Fujian province, with 2,614 mu of shiitake cultivation bases. The company plans to use about $5m of the net proceeds to acquire 30,000 additional mu (a Chinese unit of area measure of about 730 square metres) of plantations of eucalyptus, the wood which Yamada converts into sawdust and makes into logs to grow its modified shiitake mushrooms on. Yamada currently owns 20,000 mu of eucalyptus plantations, the size of 1,800 football fields. The invitation closes at noon on 6 Oct-10. Trading of Yamada shares is expected to start at 9am on 8 Oct-10.

Significance: As the Chinese government pays more attention to the indiscriminate logging of trees, Yamada Green Resources business seems secured given its own eucalyptus plantations, which ensure the upstream resource sustainability.

UOL Wins Joint Tender Bid For China Land Parcel
UOL Group, Kheng Leong Co and Singland China Holdings have successfully tendered, on a 40:30:30 basis, for the proposed acquisition of a land parcels in Shanghai’s Changfeng Ecological Business Park worth Rmb2.06b ($405.1m). The two other parties, Kheng Leong Co and Singapore Land are linked to UOL’s controlling shareholder, Wee Cho Yaw. The land cost translates to 24,000 yuan per square metre of gross floor area. UOL plans to develop the land into a mixed-use development comprising residential units, which will make up about 90% of the land use, and retail space. UOL and its partners will hold a 70-year tenure for the residential component, and 40 years for the retail component.

Significance: UOL’s forward sales remained strong in 1H10. In terms of its outstanding Singapore land bank, it now holds only one site – the former Spottiswoode Park site that could also be launched this year. Thus, the aforesaid tender serves as a good opportunity for UOL to hold out and replenish its land bank out of Singapore.

Gold May Climb to Record on Dollar Weakness; Silver Touches 30-Month High
Gold traded near a record as the dollar slumped on prospects for a further easing of monetary policy by the U.S. central bank to safeguard the economic recovery. Silver reached a 30-month high before declining.

GIC recoups financial-crisis losses
THE Government of Singapore Investment Corp (GIC) said that its asset- allocation strategy to reduce exposure to America and Europe has paid off, and it has significantly recouped most of the losses incurred during the global financial crisis.

How to work out price of a point on Forex

“Despite all the hype about its multi-year rally, gold is actually lagging many other commodities in that it hasn’t yet eclipsed its 1980 high on an inflation-adjusted basis, Holmes says, noting the same is true of silver.”

Posted Sep 28, 2010…



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