Chitaly, Symphony suspended pending deals

PUBLISHED : Wednesday, 27 July, 2005, 12:00am
UPDATED : Wednesday, 27 July, 2005, 12:00am

Two more companies were suspended from trading yesterday pending equity financing plans and sources said one of them, Chitaly Holdings, had already raised $100 million through a top-up share placement. Trading in furniture maker Chitaly was suspended pending an announcement relating to a top-up placing of shares.

Sources said Chitaly completed its share placement on Monday by issuing 20 million new shares at $5 each. The placing price represents a 13.8 per cent discount to the company's share closing price of $5.80 on Monday. Macquarie Equities is the share sale arranger.

Share trading of footwear products manufacturer Symphony Holdings was also suspended yesterday, pending an announcement on a rights issue.

The equity financing plans of Chitaly and Symphony follow a larger share placement by Jiangxi Copper, China's largest producer of the metal.

The copper producer yesterday set its placing price at $3.813 - 7 per cent lower than its trading price of $4.10 before it was suspended - to raise $880.8 million.

The company offered 231 million shares with an indicative price range of $3.72 to $3.90 on Monday.

Sources said the placement received a good response and most of the demand for the shares was coming from Asia.

Market observers said more share placements were expected in the bullish market. At least seven other companies have tapped the market for a combined $2 billion within the past month.

Blue-chip property companies are generally tipped as being next in the queue.