.

I think WCC might be staying on AIM a lot longer. It seems to be they want to raise a load of cash in Hong Kong, but the global situation is not compelling to do it. Might it be canceled until next year now ?

Certainly a lot of people feel they were misled (by who though) as they were expecting no fund raising and so it does not matter they can go ahead and list, but it seems to me that fund raising either at listing, or not long after, is key and so they have postponed for now.

I did post a couple of weeks back in a few places that "if" they postpone it will give the game away about the potential to be looking for fund raising, not just introduction.

A big fund raising will dilute earnings down and pull the rating up to be in line with peers in Hong Kong, meaning the expected (by the ADVFN posters) big leap up might never now happen.

In the short term I can see many more people now selling their margin/spread bet positions, and others taking profits and coming back later, so there could be more weakness in the short term.


A few links to the issues :

http://online.wsj.com/article/SB10001424052748704370704575227980016059138.html

http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1055400/1/.html

http://www.businessweek.com/news/2010-05-07/swire-properties-shelves-2-7-billion-hong-kong-ipo-update3-.html

.

i think i'll just say, "Chinese stock!" ...... those who could be bothered to read my ramblings will understand that comment exactly

More weakness coming for WCC as China growth very unlikely to sustain. SELL at 470p.

400p ?

not been reading the site here for some time, however been increasing my holding and relisting looks on course for early august. good numbers out too - staying put for the time being - with a low pe, great value and a test of the highs coming.

Another excellent day and testing the 7 level again. I understand there's been a bit of investor presenting going on although not privy to the detail. Bound to be some resistance around here but a good long inverted head and shoulders nicely formed before final break higher before HK listing I suspect.

West China Cement to raise up to $200 mln in HK IPO

Wed, 28th Jul 2010 11:48

HONG KONG, July 28 (Reuters) - Chinese cement producer West China Cement Ltd, plans to raise $150 million to $200 million from a Hong Kong initial public offering in August, a term sheet obtained by Reuters showed.

West China, which started IPO premarketing on Tuesday, is the second-largest cement producer in terms of production capacity in 2009 in Shaanxi province.

The company which plans to delist from AIM, aims to kick off an IPO marketing road show on Aug. 5 and to list on Aug. 19 in Hong Kong, the term sheet said.

The company plans to sell 823 million new shares, or 20 percent of its enlarged share capital, and would use 60 percent of the proceeds for capacity expansion and the reminder for repaying loans.

Deutsche Bank and ICBC International are handling the IPO



So after a 50 for 1 share split



If they raise the minimum for the shares :

150M US$ for 823M new shares.

18 US cents per new split share.


18 US cents x 50 = 9.11US per share old shares.


Means you present shares are worth GBP 5.87



If they raise the max the its :

200M US$ for 823M shares

0.24US cents per new split share

24 cents x 50 = 12.15US$

Means your present shares are worth GBP 7.83




So the target price to sell to HK insti's is between GBP 5.87 and GBP 7.83

They will have to accept the price on offer for the cash.


At least you know now the price range.

Rumours doing the rounds that they might have to delay the HK listing again as they could not get it fully subscribed to, due to a lack of interest.

If this is true its a major issue IMO, in terms of PR and reputation and of course listing price.

http://translate.google.com/translate?js=y&prev=_t&hl=en&ie=UTF-8&layout=1&eotf=1&u=http%3A%2F%2Fnews.stockstar.com%2Finfo%2FDarticle.aspx%3Fid%3DSS%2C20100806%2C30192581%26columnid%3D2479&sl=zh-CN&tl=en

Is it a buy or a short from here? I think it's a short.

The article says :

WCC were planning to complete the placing during the 9th to 12th of August. They would then delist from AIM on 19th and same day list in Hong Kong.

The article says however that the "official" reasons for another delay is due to "technical issues".

However, the reports source says its not "technical" problems its because they were unable to raise the money as the subscription was not full due to a lack of interest.

If they cannot get the money it means they now have to lower the price etc etc etc etc.......


Will it list therefore at the lower end of expectations ? Say 500p to 550p levels ?

Nutter

play with chinese stocks at your peril .... the market is quite difficult enough without loading the dice even more heavily against yourself

Interesting, reading another Chinese press article it says the "raising" was a flop with a complete lack of interest.

They only managed to raise 30 million US$ and they wanted 200 million, real lack of interest hence the very small amount of cash raised.

Very interesting if this turns out to be correct.

Price range now lower it seems ? More information.

http://uk.reuters.com/article/idUKTOE67800W20100809

Taking into account the 1 for 50 split this now makes the price range lower down to 487p up to 680p.

If they struggle to fill it, the price could be down near 487p a share the Hong Kong II's pay........

Interesting to note that HAWK management are taking legal action against defamatory posts on bulletin boards.

Good start in Hong Kong up 15%.

Up another 7% today to HKD 2.06 - equates to about 880p in old money. Once the dust settles I intend to drop this into my ISA now.

why is this share suspended from AIM?

cynic -

23/08/2010 7:00am

CANCELLATION OF ADMISSION OF SECURITIES TO TRADING ON AIM

WEST CHINA CEMENT LIMITED

At the request of the company trading on AIM for the under-mentioned securities
have been cancelled from 23/08/2010 7:00am.