State-owned Korea Deposit Insurance Corporation sold down a 9% stake in Woori Finance

State-owned Korea Deposit Insurance Corporation sold down a 9% stake in Woori Finance, the holding company for the country's second largest bank, after market close on April 8 to raise W1.16trn (US$1.03bn). The deal was done flat to the closing share price of W16,000, the top of the W15,400–W16,000 guidance range. The base deal size was 56.4m shares, equivalent to a 7% stake, but it was increased on strong demand. Domestic accounts took 45% of the deal, with international investors taking 55%, most of which went to Asian accounts. The demand was put down to indications by the government that this would be the last selldown in Woori Finance before a majority stake is sold to a strategic investor. Credit Suisse, Daewoo, Samsung and UBS were bookrunners. Woori Finance shares closed at W16,650 today.

 

Sijia Group, which abandoned its listing plan in February, is returning to the market with a 18% cut in fundraising size. The company launched roadshows yesterday by selling 200m new shares at HK$2.69–$3.38 apiece to raise up to HK$676m (US$87m). The price range represents a 2010 P/E of 7–8.8 times. The deal will price on April 19. Piper Jaffray is the bookrunner. Sijia is principally engaged in the design, development, manufacture and sale of polymer processed high strength polyester fabric composite materials.

 

Tian Yuan Mining is rumoured to be looking to start premarketing its US$300m–$400m Hong Kong IPO early next week. Sources, however, said the timetable has not been fixed as yet. Citigroup is the sole bookrunner.

 

Sole bookrunner Morgan Stanley completed a HK$777m (US$100m) selldown in Intime Department Store yesterday. Warburg Pincus was the vendor. The deal comprised 105m shares at HK$7.33–$7.66 apiece, representing a 6%–10% discount to pre-deal spot. The deal finally priced at HK$7.40, a 9.2% discount to pre-deal spot. There were about 50 investors in the book, with demand mainly from Asia. The company fell 5.6% to close at HK$7.69 today.

 

The board of Chunghwa Picture Tubes has approved the company's plan to issue up to 1bn new shares in the form of GDRs to raise about NT$10bn (US$317m). Of the shares on offer, 10%–15% will be sold to the company's staff. Proceeds will replenish capital, purchase overseas materials and machinery and repay bank loans. CPT is also planning to raise up to NT$20bn by selling not more than 2bn shares through a private share placement or a private convertible bond.

Meanwhile, the company plans to reduce its capital by 60.59%, or 9.99bn shares, on losses it posted last year. It made a huge net loss of NT$38bn last year as the global financial crisis hurt products demand. After the capital reduction, the company's capital will be at NT$64.97bn. The proposed reduction plan is pending shareholder approval on May 20.

 

The S$170m (US$122m) SGX IPO of electronics and furniture retailer Courts Asia is on hold. It lodged its preliminary prospectus on March 12. Macquarie is sole global coordinator. OCBC is coordinator for the public offer. CLSA, Macquarie and RBS are joint bookrunners and also joint underwriters with DMG & Partners Securities and OCBC.

 

Yamaha Motor, the bike manufacturer, will price its follow-on between April 13 and 16. The allocation for the ¥77bn (US$821m) deal is now planned at 80% for retail investors and 20% for institutions. However, around half of Yamaha's shareholders are overseas investors, and the domestic only deal is said to be attracting strong interest from international short and long funds. Since the deal was launched, the share price has dropped 10.5% to close today at ¥1,267. Nomura is bookrunner.