JOHNSON Electric Holdings yesterday launched a US$130 million Euro-convertible, taking the total raised in these types of issues on Hong Kong stocks to more than $2.3 billion. The amount raised by Hong Kong stocks is more than that taken in cash calls by rights issues, amounting to $1.03 billion this year. Euro-convertibles are on target to overtake the total raised by placements, $4.2 billion. Morgan Stanley International and Jardine Fleming International were the joint lead managers with Morgan Stanley doing the book running. The seven-year issue has a 4.5 per cent coupon, compared with the ordinary share yield of 1.3 per cent. The premium on the issue is expected to be set at 20 per cent, placing the conversion level at around $22.90. It is understood the issue went well. A broker said: ''From my understanding of how things went, the whole thing was away within 11/2 hours of opening the book.'' The issue represents a widening of the stock varieties targeted in these types of issues. In general, they have favoured property counters with asset backing and a high income flow. High-quality, well-rated manufacturing stocks now appear to be targeted by the investment banks. Johnson Electric, a specialist in manufacturing mini-motors, is the institutional investor's favourite industrial stock.
