Standard Chartered Bank

Dah Bang in $56.5m new issue setback

PUBLISHED : Friday, 08 July, 1994, 12:00am
UPDATED : Friday, 08 July, 1994, 12:00am

THE new issue of Dah Bang (Holdings), with Standard Chartered Asia among its underwriters, has been under-subscribed.


The printing machinery distributor has only seen a 80 per cent subscription rate for its $56.5 million issue.


It represents one of the few under-subscriptions in the territory's history of new issues.


Recent issues have not been well received in the face of a sluggish market and bearish sentiments. Luoyang Glass, for instance, was only marginally over-subscribed.


However, there have been exceptions, such as Sinocan Holdings, whose $340 million issue was over-subscribed 3.6 times.


But it is easier for a small flotation to achieve full or over-subscription.


A number of under-subscriptions in the past have taken the business world by storm.


National Mutual, sponsored and managed by Standard Chartered Asia, suffered one of the largest under-subscriptions in dollar terms.


It was the first insurance company to come to the market and one of the largest new listings since June 1990.


One of the worst subscriptions ever in percentage terms was scored by Shun Cheong Holdings, an electrical installation company sponsored by Credit Lyonnais Asia, which was just 11.74 per cent subscribed leaving $58.5 million of stock with the brokers.


Dah Bang launched a $56.5 million new issue to list on the stock exchange by offering 50 million new shares at $1.13 each, with one free warrant for every five shares subscribed.


 
 
 

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