A Billionaire’s affair?
Fosun International Ltd. is raising as much as HK$10.85 billion ($1.39 billion) in an initial public offering whose investors include Hong Kong billionaire Li Ka-shing. The Shanghai-based company, whose businesses range from steel to financial services, is offering 1.25 billion shares in Hong Kong at HK$6.48 to HK$8.68 each. Fosun co-founder Guo Guangchang's bets on companies such as Shanghai Forte Land Co. and Shanghai Fosun Pharmaceutical Group Co. have made him China's ninth-richest man, with an estimated fortune of $1.5 billion.
Guo typically borrows to fund purchases, mirroring the approach of buyout companies like Blackstone Group LP, which last week raised $4.1 billion in an IPO. “This is the China equivalent of Blackstone,” said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. “They have major investments in several very successful listings. The market perception is they have the Midas touch.” China International Capital Corp., Morgan Stanley and UBS AG are arranging the sale, which may become the third-largest Hong Kong IPO this year at the top end of the pricing range.
Guo owns 58 percent of Fosun, said a report by UBS. His stake would be worth $3 billion at the top end of the range. He is the company's chairman. Eleven corporate investors will split $220 million of shares between them, the people said. They include companies controlled by Hong Kong tycoons Li and Lee Shau-Kee; the Government of Singapore Investment Corp.; First State Investments; China Life Insurance Co.; and China Pacific Insurance Co., they said.
Fosun’s growth in the region is noticeable. It invested 20 million Yuan ($2.6 million) in property developer Shanghai Forte in 1994, according to the UBS report. As of June 13, that stake was worth $6.1 billion, UBS said. A similar-sized investment in Shanghai Fosun in the same year has since swelled to 7.5 billion Yuan, the report said. The sale of the 20 percent stake values the Shanghai-based company at between 13 and 17 times estimated earnings for 2008, the people said. Li's Cheung Kong Holdings Ltd., with operations from ports to retailing, trades at 17.4 times next year's estimated profit.
Mr. Li and the other tycoons are boosting business activities while Hong Kong’s market is thriving. How many more billionaires do we have to look forward to? Mr. Li seems to be in control of the viable businesses of Hong Kong and has been supporting Hong Kong’s growth with investment in many trade activities. Will such tycoons be the main figures behind Hong Kong’s stability? Will Hong Kong’s growth be perpetual and will it eventually dethrone other financial hubs like Singapore or Shanghai? What do you think?
Guo typically borrows to fund purchases, mirroring the approach of buyout companies like Blackstone Group LP, which last week raised $4.1 billion in an IPO. “This is the China equivalent of Blackstone,” said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. “They have major investments in several very successful listings. The market perception is they have the Midas touch.” China International Capital Corp., Morgan Stanley and UBS AG are arranging the sale, which may become the third-largest Hong Kong IPO this year at the top end of the pricing range.
Guo owns 58 percent of Fosun, said a report by UBS. His stake would be worth $3 billion at the top end of the range. He is the company's chairman. Eleven corporate investors will split $220 million of shares between them, the people said. They include companies controlled by Hong Kong tycoons Li and Lee Shau-Kee; the Government of Singapore Investment Corp.; First State Investments; China Life Insurance Co.; and China Pacific Insurance Co., they said.
Fosun’s growth in the region is noticeable. It invested 20 million Yuan ($2.6 million) in property developer Shanghai Forte in 1994, according to the UBS report. As of June 13, that stake was worth $6.1 billion, UBS said. A similar-sized investment in Shanghai Fosun in the same year has since swelled to 7.5 billion Yuan, the report said. The sale of the 20 percent stake values the Shanghai-based company at between 13 and 17 times estimated earnings for 2008, the people said. Li's Cheung Kong Holdings Ltd., with operations from ports to retailing, trades at 17.4 times next year's estimated profit.
Mr. Li and the other tycoons are boosting business activities while Hong Kong’s market is thriving. How many more billionaires do we have to look forward to? Mr. Li seems to be in control of the viable businesses of Hong Kong and has been supporting Hong Kong’s growth with investment in many trade activities. Will such tycoons be the main figures behind Hong Kong’s stability? Will Hong Kong’s growth be perpetual and will it eventually dethrone other financial hubs like Singapore or Shanghai? What do you think?
posted by Charltonmedia.com @ 3:27 PM
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