JCG Holdings expects to announce today the successful $136 million placing out of 40 million existing shares in the company.
The transaction cuts the controlling stake held by The Public Bank Group of Malaysia in JCG by 10 per cent to 65 per cent.
JCG director Leong Kwok Nyem said last night the placing was agreed by the deposit-taking company's board to increase the liquidity of the stock following numerous approaches from institutions for blocks of shares.
The shares were placed at $3.40, a 3.5 per cent discount to yesterday's close of $3.525 and a price earnings ratio of 11.72 times prospective earnings this year and 8.95 times prospective earnings in 1994.
The private placing to institutions represents a cash call greater than that of the listing of JCG on the Hongkong Stock Exchange in October 1991. Net proceeds of $127 million was raised in a public offering of shares amounting to 106.5 million at $1.26 each, which took in a gross figure of $136.3 million. The price represented a prospective PE of 7.55.
Mr Leong said: ''The actual impact on the controlling shareholder is minimal as we will still have 65 per cent of the shares and the controlling shareholder also holds 75 per cent of the issued warrants.'' The transaction, launched in London after the Hongkong stock market closed, was being handled by SBCI Finance Asia in Hongkong.