YZJ Financial shares close down 51.4% on ex-entitlement to YZJ Maritime shares
YZJ Maritime is a spin-off of YZJ Financial and is scheduled to be listed on the mainboard this month
[SINGAPORE] Shares of Yangzijiang (YZJ) Financial fell nearly 61 per cent on Monday (Nov 10) morning in intraday trade as the counter goes ex-entitlement to an in-specie distribution of shares in YZJ Maritime.
As at 9 am, the counter fell to S$0.415, down by 60.8 per cent or S$0.645, with around 990,100 shares changing hands. It later pared its losses and finished the day at S$0.515, a decline of 51.4 per cent or S$0.545, with some 62.1 million shares transacted.
YZJ Maritime is a spin-off of YZJ Financial and is scheduled to be listed on the Singapore Exchange mainboard this month.
All shareholders of its parent are entitled to YZJ Maritime shares on a one-for-one basis. The counter went ex-entitlement on Monday, with the price adjustment close to S$0.60, at which YZJ priced its placement shares.
The private placement of about 8.6 million shares raised gross proceeds of at least S$5.2 million. The placement represents about 0.25 per cent of YZJ Maritime’s share capital, which at present totals around 3.5 billion shares, with issued capital valued at US$1.45 billion.
Upon completion of the distribution and placement, YZJ Maritime expects a market capitalisation of S$2.04 billion, The Business Times reported previously.
Earlier in November, YZJ Financial announced the cancellation of an electric-vehicle battery deal with Ningbo Shanshan.
The group said in a bourse filing that its plans to invest about one billion yuan (S$183.1 million) in the restructuring of Ningbo Shanshan would not be going through.
This is in light of how its wholly owned subsidiary, Jiangsu New Yangzi Commerce and Trading, and two strategic investors were unable to secure an approval from the creditors of the lithium battery producer.
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