WH Group to undertake one of Asia’s biggest IPOs

Two companies have filed applications to the Stock Exchange of Hong Kong to launch separate IPOs of hefty sizes.

WH Group, formerly known as Shuanghui International, filed an application to undertake one of Asia's biggest IPOs of recent years, following its acquisition of US pork producer Smithfield Foods. The proposed float, which is expected to raise US$5bn–$6bn, is set to launch in April.

BOC International, Citic Securities International, DBS, Goldman Sachs, Morgan Stanley, Standard Chartered and UBS are sponsors of the IPO.

Harbin Bank, located in North-East China, also filed an application for its proposed IPO of US$1bn, which is expected to hit the market as early as the end of March.

ABC International, BOC International and CICC are sponsors on the float. Seven others, namely BoCom International, China Merchants Securities, CMB International, CIMB, Credit Suisse, DBS and Haitong International, joined the syndicate last month.

Taiwan's Far Eastern International Bank raised US$135m through the sale of GDRs. The deal was launched at a base deal size of 16.2m GDRs with an option to increase the deal size by 3.96m GDRs. The option was partly exercised as 18.25m GDRs were sold in the end.

The offer was priced at US$7.40 per share, at the bottom of the indicative price range of US$7.40–$7.64, or at a discount of 8% to the pre-deal spot.

The deal saw good participation from long-only funds and hedge funds. There were about 40 investors on the book. The deal was mainly sold to international investors, though some domestic accounts also participated in the transaction.

There is a 90-day lock-up on the vendor.

Deutsche Bank and UBS were the joint bookrunners.

Goldpoly New Energy raised HK$826m (US$107m) from a placement of primary shares. The base deal comprised 420m shares at an indicative price range of HK$1.70–$1.74 each, or at a discount of 7.5%–9.6% to the stock's January 22 closing price of HK$1.88.

Due to strong demand, the deal was later increased to 480m shares. It was priced at HK$1.72 each, representing a discount of 8.5% to the pre-deal spot.

The book was multiple times covered, with more than 100 investors participating. There was good support from existing shareholders and renewable energy funds. Demand came mostly from Asia. European accounts participated as well. 

There is a 180-day lock-up for the company. Proceeds will be used for acquisition of solar power plants, as well as for general corporate purposes.

BOC International, Morgan Stanley and CLSA were the joint bookrunners.

Playmates Holdings raised HK$295m (US$38m) through the sale of its stake in subsidiary Playmates Toys.

Playmates Holdings sold 82m shares, or 6.95% of the existing share capital, at the bottom of the indicative price range of HK$3.60–$3.80, or at a discount of 10% to the pre-deal spot. There were more than 50 accounts in the book with strong support from long-only funds.

The vendor is under a 90-day lock-up. CLSA was the sole bookrunner.

South Korea's GS Engineering & Construction raised US$100m through a convertible bond issue. The 3.25% bonds are due in 2019 and the coupon was fixed from the 2.75%–3.25% range payable semi-annually.  

The conversion premium is 20% above the reference share price of W36,300 (US$33.45) and was fixed from the 20%–30% range. The initial conversion ratio is 6,151.6873 shares for one bond of US$250,000 denomination. The bonds can be converted 12 months after closing date and seven days prior to the maturity date.

There is an investor put option on or about January 28 2016. The put price is 100% of the principal amount and the redemption price at maturity is 100% of the principal amount. About 20–25 accounts participated in the transaction.

JP Morgan was the sole bookrunner.

Comforia Residential REIT has priced its ¥22.7bn (US$218m) follow-on offering  at ¥712,530 a share. At the base deal size of 31,900 shares the transaction will total ¥22.7bn. There is a greenshoe of 1,595 shares.

The final price represented a discount of 2.7% to the January 22 close ¥732,000 when the issue was priced.

Mizuho and SMBC Nikko are joint lead managers. Daiwa, Nomura, Mitsubishi UFJ Morgan Stanley and Tokai Tokyo are also underwriters.

Proceeds will be used to help fund the acquisition for ¥37.4bn of 22 properties.

The final price of Honworld Group's Hong Kong IPO is HK$7.15 (US$0.92) and not HK$4.95 as IFR reported. As reported yesterday, the deal raised HK$893m after pricing at the top of the indicative range. The company marketed 125m shares at a guidance range of HK$4.95–$7.15