AustAsia’s offering of 30.64 million shares, issued under both its international offering and its Hong Kong public offering, have both been oversubscribed.
AustAsia is the China-focused milk business of SGX-listed Japfa.
The international offer shares, comprising 27.58 million shares have been slightly over-subscribed, representing around 1.16 times the number of shares initially available. There are a total of 107 placees under the international offering.
The Hong Kong offer shares have also been over-subscribed at 2.08 times, with a total of 1,971 valid applications received for 6.36 million shares. As no reallocation procedure took place, the final number of shares under the Hong Kong public offering is 3.064 million shares, or 10% of the total number of shares available. The shares were allocated to 1,491 applicants, among which, 1,238 applicants have been allocated one board lot of the offer shares.
According to AustAsia, certain cornerstone investors have subscribed for a total of 24.308 million shares under the relevant cornerstone investment agreements entered into between AustAsia and the investors. The number of AustAsia shares allotted to each of the cornerstone investors was calculated based on an exchange rate of US$1 to HK$7.77862 as disclosed in AustAsia’s prospectus and rounded down to the nearest whole board lot of 1,000 AustAsia shares.
In connection with the global offering, AustAsia has granted an over-allotment option to the international underwriters to require the group to allot and issue up to an aggregate of 3.063 million additional shares, representing 10% of the total number of shares initially being offered under the global offering. The shares were offered at the offer price of HK$6.40 ($1.11) to cover the over-allocations in the international offering.
The over-allotment option is exercisable by the overall coordinators on behalf of the international underwriters at any time from the listing date till Jan 20, 2023.
Further to its announcement, AustAsia revealed that its loan capitalisation had taken effect on Dec 29. Under the loan capitalisation, the group has allotted and issued 31.04 million new shares to the company for the capitalisation of the existing shareholder’s loans totalling some US$25.54 million ($34.4 million) based on the offer price of HK$6.40 per share.
Following the completion of the loan capitalisation, Japfa holds a 64.28% stake of AustAsia’s enlarged pre-IPO share capital and a 59.97% stake in the group’s post-IPO share capital.
Shares in Japfa closed flat at 53.5 cents on Dec 29.