CHINA XLX made a debut on the stock exchange of Hong Kong today with a bang, closing at HK$5.20 with 3.77 million shares changing hands. The stock touched a high of HK$10.
The bullish investor sentiment spread over to Singapore, where XLX has a primary listing. The stock closed up 26 cents, or 51%, at 77 cents.
This is still at over 20+% discount to the HK price.
The XLX listing had a direct impact on its industry peer listed in Singapore, CJ Fertilizer, which rose 3 cents to close at 28 cents.
Even Li Heng Chemical Fibre jumped 5.5 cents, or 24%, to close at 28 cents - this company had its novel dual-listing plan rejected by the Singapore Exchange recently.
Market attention was also focused on at least four other Singapore-listed stocks, with impending dual listings:
MAP Technology: The stock closed at 6 cents, unchanged from yesterday. However, it is noteworthy that today, Ferrell Premier Funds Limited, PCC Sub-Fund Ferrell Asia Fund bought 3 million shares of MAP at 6.5 cents apiece.
Its total stake now: 168.65 million shares, or 9.08%.
Two of Ferrell’s directors are also directors of MAP Technology – ie, Dr David Lee, managing director of Ferrell Asset Management, and Jeanna Chan, an executive director of Ferrell.
Dual listing: Last night (Dec 7), MAP (www.maptech.com.sg) announced that it was considering a proposal to offer and list Taiwan Depository Receipts (the “TDRs”) representing an aggregate of up to 228 m shares of the company on the GreTai Securities Market of Taiwan.
It’s a natural location because MAP’s substantial shareholder, Min Aik Technology, is a Taiwan hard disk drive components contract manufacturer.
Until the last AGM, the CEO of MAP was Robert Chia, a Singaporean, who is concurrently chairman and CEO of Min Aik Technology. He earned his Bachelor of Science Degree in Business and Management from the then-Nanyang University in 1978.
MAP has since been run by executive director Philip Foo and the EXCO.
The total number of units of TDRs to be issued, the total number of shares of the Company comprising the TDRs, and the issue price per unit of TDR shall be determined between the Company and the appointed issue manager of the Proposed Listing, President Securities Corporation.
Being the first offering of TDRs, the proposed listing will restrict participation to only substantial shareholders of the company (i.e. shareholders who hold 5% or more of shares in the Company). Thus, only Min Aik Technology, Ferrell Asset Management Limited (FAM) and/or FAM’s affiliated companies are eligible to participate in the proposed listing.
Oceanus (www.oceanus.com.sg) is the world's largest land-based abalone farm operator, with its assets largely on the coast of southern China.
Its chairman and single largest shareholder is Dr Ng Cher Yew, a Singaporean.
Dual listing: It has received approval from all relevant authorities for admission to trading on the Taiwan Stock Exchange (“TSE”) of Taiwan Depository Receipts (“TDR”).
Since the Group announced its intention to list TDR on 27 October 2009, it has submitted applications to and has obtained approvals from all relevant authorities such as TSE, Taiwan Central Bank (TCB), and more recently and critically, the Financial Supervisory Commission, Executive Yuan, and The Securities and Futures Bureau of Taiwan.
On some stock forums, the speculation is that shares of the TDRs will be listed at over 40 cents apiece.
Dual listing: On 28 September 2009, Z-Obee (http://www.ztt.com.cn/) announced a proposed dual primary listing of its ordinary shares ("Shares") on the main board of The Stock Exchange of Hong Kong.
Last week, the SGX-ST gave its clearance for the Circular and in-principle approval for the listing and quotation of new shares to be issued pursuant to the 2009 Scheme, subject to the approval of the shareholders of the Company at a special general meeting to be convened on 30 December 2009 and the Company's compliance with the SGX-ST's listing requirements and guidelines.
Midas: Stock jumped 10.6% to close at 94 cents.
Dual-listing: Midas said in September that it has appointed Credit Suisse (Hong Kong) Limited (“Credit Suisse”) to assist the Group in evaluating and preparing for this listing.
Commented Mr Patrick Chew, CEO of Midas: “The Group has been progressing steadily since our listing on the Singapore Stock Exchange in 2004 and we are now ready to take Midas towards the next development phase.
"We are optimistic that a listing on both the Singapore and Hong Kong bourses will allow us to tap into a wider investor base, increase liquidity and enhance our stock value."