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
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.