Search results for

A collapsing stock market in Taiwan did not deter investors from buying 200m shares late last week in Yageo Corp. JP Morgan arranged the transaction and was delighted with the outcome. "Getting the deal done in this environment is a fantastic achievement," said Michiel Steenman, head of ECM for Asia Pacific at the bank.

Facing up to volatile market conditions, Korean oil refiner and petroleum marketer LG Caltex successfully tapped strong US investor interest to support its $300m 10 year global bond issue. The Euro 144A deal had to be priced against an alarming background of strong volatility in emerging market spreads due to Argentina's problems. It was also competing against PCCW-HKT's jumbo global issue that was being marketed at the same time. These factors did not leave the deal unscathed, with spreads widening from estimates of 260bp-270bp over US Treasuries last week.

The Port Authority of Singapore (PSA), the world's busiest container port operator, has shelved plans for its IPO. The news is disappointing for DBS Group, Morgan Stanley and UBS Warburg, which have the mandate for the transaction. The float was due to be one of the largest of the year in Asia. "All of us are familiar with what is happening: the IPO market is dead," PSA chairman Yeo Ning Hong said in a press conference. Singapore's benchmark Straits Times stock index is down 14% so far this year.

New Zealand Moody's has changed the outlook of Carter Holt Harvey's rating of Baa2 to negative from stable, while placing the company's P2 short term rating on possible downgrade. The agency said the actions were prompted by the company's weakened operating results since the fourth quarter of 2000.

Australia Commercial property investment vehicle AMP Office Trust (AOT) has agreed to buy Sydney's Goldfields House for A$182m from AMP and will issue 124m shares to AMP Life, an arm of AMP, at A$1.17 per share, or A$145m, and borrow A$50m to pay for the 27 floor property. The purchase will bring AOT's market capitalisation to more than A$1bn.

The IPO of Euro-Asia Agricultural (Holdings) closed its books more than 75 times covered on the retail IPO and more than 12 times covered on the institutional offer. But this did not prevent the shares wilting 11% yesterday (Thursday) on the first day of trading. They were quoted at HK$1.33 early yesterday afternoon.

Hynix Semiconductor shares have collapsed by 60% since the jumbo $1.25bn international offering arranged by Salomon Smith Barney. Since the transaction -designed to save the ailing company - global sentiment to chipmakers has turned even more negative and Hynix this week stated that demand and prices of memory chips are unlikely to recover soon. The company reported an almost $1bn second quarter loss.

Consumer finance company Aiful is braving the miserable Tokyo stock market conditions and proceeding with efforts to sell 7.5m shares, as well as a possible 1m share greenshoe. The deal will comprise a domestic issue of 3.5m shares handled by Nomura Securities and an international offer of 4m shares arranged by Morgan Stanley and Nomura.

Australian packaging company Amcor is planning to do the first rated capital markets transaction in Australia to combine credit lease-backed and commercial mortgage-backed securities from the same issuer. Arranged by UBS Warburg, Amcor will sell 17 of its industrial properties throughout Australia to a special purpose vehicle, which will fund the purchase through a CMBS issue and two separate issues of notes to a commercial bank.

When Australian Magnesium Corp (AMC) announces the result of its A$680m new share offering today (Friday), the company's stakeholders could well be disappointed. Bankers in Australia yesterday (Thursday) told EuroWeek that by midday on the last day of the bookbuild, the book was barely half covered. Although there appear to be at least six big orders from Australian institutions that have been strong supporters of AMC's new magnesium project, foreign fund managers were apparently reluctant to support an issue that might not have sufficient institutional and retail demand at home.

* ANZ Banking Group Ltd Rating: Aa3/AA-/AA-

The international bond markets remained quiet as nervousness over a possible Argentinian default carried over into this week. The European Central Bank left interest rates unchanged yesterday (Thursday), much in line with market expectations