Today, 31 March 2016, Sino Grandness submitted an application to list Garden Fresh on the HKSE. Hooray! The path is paved for the stock to .......reach $1.00. dyodd
July 6 (on or around) is the date mentioned in the IPO draft prospectus. The actual listing date may turn out to be earlier if one assumes that the prospectus had been reviewed + commented on by the HKSE a few Xs prior to Garden Fresh submitting it on 31 March. This is to be expected, in order for both sides to have a smooth time after the official submission of the application. It's unhealthy if a draft prospectus is submitted publicly in a grossly inadequate form and both sides have to spend a lot of time getting it into shape.
Worrying about the US$20m from Thai investor? chan99 at valuebuddies.com has a positive view and a rational one at that:
"From my understanding of the circular, the loan is for expansion of the canned foods business. Since Garden Fresh will be listed separately the cash flow from that business cannot be used for expanding the canned business segment going forward. We all know that Garden fresh is the cash cow of SinoG. Secondly the belief that TTA is showing in this business is something to be happy about as they have stood firm behind SinoG through out, never sold any of their shares & have in fact bought more when the price was depressed. Thirdly the interest rate is only 12% as against 25% that was agreed for CBs earlier. This shows the strides that SinoG has made in terms of credit worthiness. Remember that TTA had bought SinoG at about 40c initially. Now they will be buying at 55c. The dilution is a small thing in the sense that the reward that will be reaped by SH's on account of the expansion will far outweigh the dilutive effect of the convertible loan. And finally the company has clearly mentioned in the IPO document that the listing date is tentatively July 6th. So nowhere have they mentioned that the IPO will be before 31st May. They have cash balance to repay the CBs but they will need money for expansion of their canned foods business as well as for working capital purposes which is why this loan is for. I can see only this as a positive development from SH's point of view."
NextInsight
a hub for serious investors
