The Straits Times / The Business Times News on AsiaPharm

Temasek gets 19% of AsiaPharm IPO shares

By Kenneth Lim - May 05, 2004
The Business Times

TEMASEK Holdings isn't just eyeing property plays these days. The Singapore investment agency has also taken almost a fifth of China-based AsiaPharm Group's initial public offer (IPO) shares.

Temasek companies Aranda Investments and Seletar Investments have received 20 million placement shares at 28 cents apiece, or $5.6 million in total.

Those shares represent about 19 per cent of AsiaPharm's total invitation of 105 million shares and 4.9 per cent of its enlarged share capital.

Temasek, which has invested in previous Singapore Exchange (SGX) aspirants such as water treatment specialist Hyflux and semiconductor service provider United Test and Assembly Center, has said it seeks investments in 'promising local, regional and international companies with high growth potential'.

AsiaPharm, which manufactures and distributes natural and chemical drugs in China, raised $21.4 million in net proceeds from its IPO. The IPO closed this week, subscribed 10.2 times after receiving application money totalling $274.4 million. AsiaPharm starts trading on the main board today.

A dealer with a local broking house said the grey market value of the stock is 34 cents, or 6 cents over its offer price.

Other IPOs in the pipeline include local logistics company RichLand Group, which lists tomorrow; Zhejiang-based fabric printer and dyer Jishan Holdings, which lists next Monday; and Beijing-based satellite broadband specialist ChinaCast Communication Holdings, which lists next Friday.

Having sought extensions to their IPO applications, Australia-based casino operator Lasseters International Holdings and Shanghai-based Guangzhao Industrial Forest Biotechnology Group hope to launch their IPOs next week, industry sources say.