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Yangzijiang Shipbuilding Holdings, the first Chinese-owned company to sell shares in Taiwan, priced its stock at the top end of its range, underscoring warming ties between the economies.
China’s fourth-biggest shipbuilder will raise $153 million by selling 240 million Taiwan depositary receipts at NT$18.80 each ($0.80), the company said in a Singapore stock exchange filing. Each receipt represents 0.5 share of the company in Singapore, where it has a primary listing. Of the receipts, 200 million represent new shares, while the rest were sold by existing investors.
China’s fourth-biggest shipbuilder will raise $153 million by selling 240 million Taiwan depositary receipts at NT$18.80 each ($0.80), the company said in a Singapore stock exchange filing. Each receipt represents 0.5 share of the company in Singapore, where it has a primary listing. Of the receipts, 200 million represent new shares, while the rest were sold by existing investors.
The sale paves the way for more Chinese companies to list on the island’s bourse. Relations with China have improved since Taiwan President Ma Ying-jeou took office in May 2008, dropping the pro-independence stance of his predecessor as he made economic relations with the mainland a priority for his administration.
“It is the first Chinese company to list in Taiwan, so it’s quite symbolic, garnering interest from investors,” said William Cheng, a fund manager at PineBridge Investments, which oversees US$83 billion ($112 billion) of assets worldwide. “The growth of the company has also been quite decent as seen from the earnings, so that also boosted the appeal.”
The price of the receipts, equivalent to $1.59 per Singapore share, matches yesterday’s close. The stock was unchanged as of 11:19 a.m. in Singapore. The Taiwan depositary receipts will start trading on Sept. 8.
China and Taiwan signed a trade agreement on June 29 that Ma called a “vitamin” for the island as both sides agreed to reduced tariffs on exports. The Taiwan Stock Exchange also increased efforts to boost secondary listings on its bourse. Last year, it attracted Tingyi (Cayman Islands) Holding Corp. and Want Want China Holdings, among the biggest makers of food products that operate on the mainland. Both are majority- owned by Taiwanese investors.
China regards Taiwan as part of its territory and has threatened to invade if the island declares formal independence. The two sides have been ruled separately since Chiang Kai-shek’s Kuomintang, or Nationalists, fled to the island after being defeated by Mao Zedong’s Communists in 1949.
