China Everbright Water prices Hong Kong public offer at HK$2.99 apiece

SINGAPORE - Mainboard-listed China Everbright Water has priced its Hong Kong public offering at HK$2.99 apiece, following several agreements struck with joint representatives and underwriters for its Hong Kong and international offerings.

This excludes a 1 per cent brokerage fee, a 0.0027 per cent Securities and Futures Commission of Hong Kong transaction levy and a 0.005 per cent Hong Kong Stock Exchange trading fee, the water treatment company said on Tuesda (April 30).

It also brings its total share value on offer to about HK$311 million (S$54 million), for around 104 million shares. Previously, it launched its public offer at between HK$2.99 and HK$4.35.

China Everbright Water had embarked on the dual listing after previously submitting draft application proofs with the Hong Kong stock exchange on Feb 26. Some 90 per cent of the offer will be international shares, with the remaining 10 per cent for Hong Kong investors, the company said at the time.

The proposed dual primary listing on the mainboard of the Hong Kong stock exchange is expected to take place on May 8, 2019.

The move follows China Everbright Water entering a price determination agreement with joint representatives China International Capital Corporation Hong Kong Securities Limited (CICC) and China Everbright Securities (HK) Limited (CEBS), which are also acting on behalf of Hong Kong underwriters.

CEBS engages in securities brokerage, and is a subsidiary of Everbright Securities Company Limited which is an associate of China Everbright Group, a controlling shareholder of the China Everbright Water.

The joint bookrunners are CICC, CEBS, CEB International Capital Corporation (CEBI), ABCI Capital, CMB International Capital and Shenwan Hongyuan Securities (HK).

Joint lead managers are CICC, CEBS, CEBI, ABCI Securities Company, CMB International Capital and Shenwan Hongyuan Securities (HK). Meanwhile, CICC and China Everbright Capital (CEBC) are the joint sponsors.

China Everbright Water has also an international underwriting agreement with China Everbright International Limited, CICC and CEBS.

The international underwriting is for the conditional placing of new shares to non-US persons in offshore transactions outside the US in reliance on Regulation S, including professional investors in Hong Kong. This allows international underwriters and its affiliates to purchase shares offered under the international offering. This is subject to share re-allocation between the international offering and the Hong Kong offering and the over-allotment option.

In addition, China Everbright Water has entered a Hong Kong underwriting agreement with CEBC, CEBS and CEBI.

This allows the underwriters and its affiliates to purchases shares offered under the Hong Kong public offering, subject to re-allocation of shares between the international offering and Hong Kong public offering.

China Everbright Water shares was trading at $0.445, down 4.5 cents as at 11.17am on the Singapore Exchange.