Port play seeks new hearing for IPO plan
Tianjin Port Development Holdings will be third-time lucky if it secures a hearing for its US$100 million listing application this week, according to market sources.
The spin-off of red-chip conglomerate Tianjin Development Holdings failed to obtain unconditional approval for its initial public offering from the stock exchange in November last year and again in January.
The port operator was challenged by the listing committee over its close relationship with Tianjin authorities and also potential business competition with its parent, sources said.
It is understood Tianjin Port has since signed a non-competition agreement with Tianjin Development.
If it gains approval, it will beat Dalian Port to become the second mainland port operator to list in Hong Kong. CLSA is the sponsor of the share sale.
Dalian Port, which is being brought to market by BNP Paribas, is aiming for an April listing for its US$200 million initial public offering.
Meanwhile, Roger Wang Hung, chairman of listing candidate Golden Eagle Retail Group, said yesterday that the company would continue to open department stores in second-tier mainland cities because they had higher growth potential and more room for development.
The company plans to open two stores this year - in Xian Gaoxin and Nanjing Xuanwu.
'First-tier cities such as Shanghai offer a completely different operating environment due to intense competition,' Mr Wang said.
Shanghai Shopping, which is privately owned by Mr Wang, recorded a net loss of 10.7 million yuan in its first year of operation in 2004. Under an arrangement between Mr Wang and the company, Golden Eagle has priority rights to acquire Shanghai Shopping.
The company says it will pay 30 per cent of its net profit as dividend.
Golden Eagle plans to raise up to $1.41 billion by offering 450 million shares at an indicative price range of $2.50 to $3.15 each, which translates to 20.8 to 26.21 times forecast earnings.
The float's retail tranche opens to investors from today. The listing will be on March 21. ABN Amro Rothschild and Goldbond Securities are the joint bookrunners.
