Wednesday, May 18, 2011

CNOUHUA ... May11

China Ouhua Winery Holdings Ltd saw 8.2% of its shares cross off-market at a 25% discount to its IPO price after the moratorium period lapsed, six months after its debut on the Main Market.

The shares are believed to have been sold by one or more pre-IPO investors.

There are a few Singapore investors who hold 5% to 10% (each) while a Hong Kong investor holds about 10%. The rest is held by the majority shareholder.

Among its pre-IPO shareholders, Teo Kian Huat, a Singaporean, holds 55 million shares or 8.2% via Soleil, a British Virgin Islands (BVI)-incorporated vehicle, China Ouhua’s IPO prospectus showed.

Other early investors include Hong Kong-incorporated investor holding company HK Yin Kang, with 9% stake; and BVI-incorporated Primeforth, controlled by Singaporean Cham Poh Meng, with a 4.3% stake. Founder and executive chairman Wang Chao, who saw his holdings diluted from 63.5% to 50.9% post-IPO, remains the largest shareholder.

In an exercise that valued it at over RM400 million, China Ouhua raised RM80 million from selling about a fifth of its enlarged capital at 60 sen apiece to expand its distribution network as well as expand its production capacity.

China Ouhua, which produces over 140 varieties of bottled wine — mainly Cabernet Sauvignon, Pinot Noir, Shiraz, Merlot and Chardonnay — and sells them across China, owns two vineyards spanning 362.8ha in Yantai, Shandong. Capable of producing 12,480 tonnes of wine per year, China Ouhua’s market share is estimated at 1.49%.

No comments: