Dragon Land stock taken up

 
The Straits Times | Feb 6, 1998



DEFYING doubters, property developer Dragon Land announced yesterday that all the placement shares in its initial public offering (IPO) have been taken up.

Dragon Land - which hit the headlines last month when it launched its issue without an underwriter after receiving a waiver from the Stock Exchange of Singapore - is offering 25 million new shares at 12 US cents (20 Singapore cents) each. Of these, 15 million were set aside for the placement tranche.

The company added that the IPO has so far attracted more than the 1,000 subscribers stipulated by the stock exchange for the issue to go ahead.

The float's original underwriter, CEF Singapore, withdrew following concerns over the timing of the launch. It had advised Dragon Land to postpone the float in light of weak market sentiment.

Chairman and CEO Peh Chin Hua said yesterday: "We are delighted by the demand for our placement shares and encouraged by the positive showing in spite of the difficult economic situation in the region."

The China-focused property development company hopes to raise US$2.6 million (S$4.4 million) from the offer, which closes on Feb 10.

For the year ended June 1997, profit before a charge was $5 million on sales of $30.4 million. The company took a charge of $35,000 for losses in an investment. However, it expects net profit to grow 8 per cent this year.