YZJ Financial shares adjust 56% down on ex-entitlement to YZJ Maritime shares
[SINGAPORE] Shares of Yangzijiang (YZJ) Financial Holdings fell 56 per cent on Monday (Nov 10) morning, as the counter goes ex-entitlement to an in-specie distribution of shares in YZJ Maritime.
As at 9.02 am, the counter adjusted to S$0.455, before reaching S$0.44 by 9.07 am. The shares subsequently rose back up to S$0.50 at 9.20 am, before trading at S$0.49, still down 53.8 per cent or S$0.57 at 9.30 am. More than 20 million shares were traded.
YZJ Maritime is a spin-off from YZJ Financial and is scheduled to be listed on the mainboard this month. All shareholders of its parent are entitled to YZJ Maritime shares on a one for one basis. The counter went ex-entitlement on Monday, with the price adjustment close to the 60 cents at which YZJ priced its placement shares.
The private placement of bout 8.6 million shares raised gross proceeds of at least S$5.2 million. The placement represents about 0.25 per cent of YZJ Maritime’s share capital, which at present totals around 3.5 billion shares, with an issued capital valued at US$1.45 billion.
Upon completion of the distribution and placement, YZJ Maritime expects a market capitalisation of S$2.04 billion, The Business Times reported previously.
Earlier on Nov 6, YZJ Financial also announced the cancellation of an electric-vehicle (EV) battery deal with Ningbo Shanshan.
The group said in a bourse filing that its plans to invest about 1 billion yuan (S$183.1 million) in the restructuring of Ningbo Shanshan would not be going through. This is in light of how its wholly owned subsidiary, Jiangsu New Yangzi Commerce and Trading, and two strategic investors were unable to secure an approval from the creditors of the lithium battery producer.
