China Milk issues convertible nine months after its IPO

CHINA - The Chinese cattle breeding company raises twice the IPO proceeds after its share price doubles. The conversion premium is the highest by a Singapore issuer this year.
calendar icon 8 December 2006
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China Milk Products Group, which listed in Singapore in March, has returned to the capital markets to raise another $150 million through the sale of convertible bonds to finance its ongoing expansion.

The Deutsche Bank-led issue saw healthy demand even though the share price has more than doubled from the S$0.62 initial public offering price, which allowed the $22 million upsize option to be exercised immediately. At the final $150 million size, the bond issue accounted for about 16% of the company and was twice the size of the earlier IPO. advertisement

According to a source, more than 60 investors participated in the deal which was offered with a fixed conversion premium of 45% above yesterday’s close of S$1.38.

Source: Finance Asia.com

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