Business
China Cinda IPO Raises $2.5 Billion
HONG KONG — China Cinda Asset Management Co. raised US$2.5 billion in Hong Kong’s biggest initial public offering of the year, as investors piled into a “bad bank” that benefits from rising levels of soured loans in the country.
Cinda, which buys bad debt from banks and companies, priced its IPO at 3.58 Hong Kong dollars (46 U.S. cents), at the top end of an indicative range, after receiving more than US$65 billion in orders. The listing, the first in Hong Kong by a Chinese distressed-asset-management company, displaces Sinopec Engineering Group Co. 2386.HK 0.00% ‘s US$1.8 billion IPO as the city’s largest this year.
A rising stock market helped spur demand: The benchmark Hang Seng 0011.HK -0.79% Index, while down Thursday, has been benefiting from a return of funds into China stocks, which dominate the city’s stock market. It is up 2% in the past month, good for third in the region behind China’s Shanghai Composite Index, up 4.5%, and Tokyo’s Nikkei, up almost 7%.
But Cinda’s success is unlikely to be replicated throughout the market, say investors. Another IPO that priced Thursday, Qinhuangdao Port Co.’s US$561 million offering, priced at the low end of its IPO price range.
“The IPO market has been improving recently but it doesn’t mean all companies would do well,” said Linus Yip, chief strategist at First Shanghai Securities Ltd. in Hong Kong. “Only companies with unique business model and bright prospect would attract investors who are still selective in investing new offerings.”
Cinda offers uniqueness, as probably the first state-owned bad bank to list in a business usually dominated by hedge fund. The success of Cinda, which benefits as bad loans grow, will make the pending IPO by midtier Chinese bank China Everbright Co Ltd. less of a surefire success, say investors.
Already listed in Shanghai. Everbright Bank 601818.SH 0.00% has tried twice before to list in Hong Kong. In its latest effort, seeking up to US$2.8 billion, Everbright Bank plans to start taking orders Tuesday, having set a price range of HK$3.86 to HK$4.30, or 3.03 yuan to 3.38 yuan, for its sale of 5 billion shares. Its planned Dec. 20 listing would follow IPOs in past month by two other smaller Chinese banks, Bank of Chongqing Co. and Huishang Bank Corp. 3698.HK +0.56% —all going public as rising bad-debt levels loom in China.
Even if Everbright Bank prices at the top end of the range, Hong Kong is far short of regaining the crown it held for 2009 through 2011 as the world’s top IPO venue. Investors grew wary after a string of new listings underperformed the broader market. The Cinda and Qinhuangdao offerings pushed Hong Kong’s IPO volume for 2013 to US$15.6 billion, but that is good enough only for fourth place, according to Dealogic—behind the New York Stock Exchange, which has raised US$40 billion, Nasdaq and the London Stock Exchange.
Cinda sold 5.3 billion shares at HK$3.58, people familiar with the situation said Thursday. The indicative range was HK$3 to HK$3.58.
There was significant interest from investors seeking exposure to a company benefiting from China’s growing bad debts. The approximately US$65 billion in orders—according to other people familiar with the situation earlier—was 26 times what the company sought.
About US$20 billion in orders was received for the portion of the IPO offered to retail investors, initially about 5% of the 5.3 billion shares. That means it was oversubscribed by 160 times; the prospectus calls for the retail allotment to be raised to 20% of the total offering if the retail portion is more than 100 times oversubscribed. The shares available to institutional investors, who ordered about US$45 billion worth of shares, will be scaled back to 80% from 95%.
Even before the IPO was launched, 44% was sold to so-called cornerstone investors, which commit to holding their shares for at least six months after the listing. Among them were hedge fund Och-Ziff Capital Management Group OZM +0.79% LLC and private-equity firm Oaktree Capital Group LLC. .
Qinhuangdao Port, which is controlled by Hebei provincial government, sold 829.9 million shares at HK$5.25 each, people familiar with the situation said Thursday. The indicative range was HK$5.25 to HK$6.70.
Of the six companies to raise more than US$200 million in Hong Kong since October, just two companies are trading at least 5% above their IPO prices, according to Dealogic. Phoenix Healthcare Group Co., which raised US$220 million in November, is up 58% and real-estate developer Hydoo International Holding Ltd., which raised US$216 million, is up 9.8%.
The performance of the newly listed Chinese bank has been disappointing amid rising bad debt. Bank of Chongqing is down 2.7% from its IPO price, while Huishang Bank is up a bare 1.4%. Nonperforming loans in Chinese banking sector at the end of September totaled 564 billion yuan ($92.6 billion), up 18% from the year-earlier 479 billion yuan, according the China Banking Regulatory Commission, the country’s banking regulator
– WALL STREET JOURNAL
Nigerian comedian and popular skit maker, Chibuike Josh Alfred, known by his stage name Josh2Funny, has shed light on the profitability of the content-creating industry.
In a recent interview with Echo Room, Josh2Funny highlighted the impressive financial potential that content creators can achieve, noting that it is possible for them to comfortably afford multiple luxury cars, including up to four Lamborghini vehicles.
Speaking candidly, Josh2Funny emphasised that content creation has become an extremely lucrative field due to the constant demand for fresh and engaging material. “If you want to buy four Lamborghini from content creation, you can buy it,” he said.
His remarks underscore the significant revenue opportunities available in the digital content landscape.
Josh2Funny explained that the continuous consumption of online content is what drives its profitability. “What do you think we are doing in the content-creating industry? Are we joking? You all are with your phones, when you’re in the bathroom, when you’re [using the restroom], you’re consuming our stuff. It’s like pure water,” he stated.
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The comedian further elaborated that businesses or industries that deliver products consumed on a daily basis often see the most substantial financial returns. Content creation, with its high rate of daily consumption by audiences worldwide, aligns perfectly with this model.
“People are out there, consuming our content every time,” he said, reinforcing the idea that the reach and influence of content creators have never been more extensive.
Josh2Funny’s insights reveal why the content-creating industry has become a lucrative career path for many in Nigeria and around the world. With the continuous growth of social media platforms and the public’s insatiable appetite for entertainment and relatable content, creators are finding new and innovative ways to monetize their craft.
This shift not only highlights the potential for significant financial gain but also showcases the evolving landscape of digital media, where influencers, comedians, and skit makers can turn creativity into a sustainable and highly rewarding business.
A safety alert notification by the National Agency for Food and Drug Administration and Control (NAFDAC) in Nigeria issued on October 31, 2024, regarding NIVEA BLACK & WHITE Invisible Roll-on deodorant (50 ml) batch number 93529610, in relation to the general European Union (EU) Rapid Alert System for Dangerous Non-Food Products (RAPEX), has come to our attention.
The batch is said to contain 2-(4-tert-Butylbenzyl propionaldehyde (BMHCA).
In a statement on Saturday, in Lagos, Beiersdorf, the owner of NIVEA brand, assured that the “the Batch No. 93529610 in question has not been marketed in Nigeria and thus never recalled”.
According to the statement, Beiersdorf was well informed that “Based on current European legislation, the use of ingredient 2-(4-tert-Butylbenzyl propionaldehyde (LilialTM) in cosmetic products has been banned from the European markets as of March 1, 2022.”
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It acknowledged that “The batch in question, in fact, expired in January 2022 and was hence at the time fully compliant with the then valid European cosmetic regulation.
“As a responsible corporate citizen, Beiersdorf is working collaboratively with NAFDAC to safeguard the interest of the Nigerian consumers by ensuring that our locally manufactured product meets the global quality standards.”
It maintained that “The safety of our consumers remains our highest priority, consistent with our ethical philosophy as a business.”
In pursuit of this commitment, Beiersdorf’s entire NIVEA product portfolio formulations have been reformulated to be Lilial-free formulas in full compliance with the EU Regulation on cosmetic products well ahead of its Lilial ban coming into effect as far back as March 1, 2022. For instance, the formulation of NIVEA BLACK & WHITE Invisible Roll-on deodorant has been Lilial-free since at least 2020 across the globe, including Nigeria.
“Our trade partners were informed ahead of time and reminded of their responsibility to remove the outdated Lilial-containing products within the legal timeframe to fulfill their obligations with the European Cosmetic Product Regulation,” it added.
The Shell companies in Nigeria teamed up with the Nigerian National Petroleum Company Limited (NNPC Ltd) and other stakeholders to build Information Communication Technology (ICT) centres and a digital library in Nigerian universities in 2024.
Biztellers reports that it initiative is part of their continuing support for education.
Some of the corporate bodies that executed the projects include the Shell Nigeria Exploration Production Company Limited (SNEPCo) and NNPC Ltd, and the Nigerian Content Monitoring and Development Board (NCDMB).
The benefiting institutions were, the Niger Delta University, Amassoma, Bayelsa State, which got a digital library in April, the Sa’adu Zungur University (formerly Bauchi State University), Gadau in Bauchi State, where an ICT Centre was commissioned in July, by The Shell Petroleum Development Company of Nigeria Ltd (SPDC) as part of the Joint Venture with NNPC, TotalEnergies and NAOC.
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In what would sound like singing-off on the educational intervention initiative for 2024, the Federal University of Technology, Owerri (FUTO), overflew with joy at the unveil of a world-class engineering design studios and ICT hub, courtesy of the SPDC, NNPC Ltd and other Joint Venture partners collaborated with NCDMB.
Reflecting on the three facilities, Country Chair, Shell Companies in Nigeria, and Managing Director, SPDC, Osagie Okunbor, said, “This is Shell working to power lives in Nigeria. The projects have changed the academic and physical landscapes in the three universities and linked the students and lecturers to the global learning arena.”
The facilities at FUTO include two state-of-the-art engineering design studios and a fully furnished 100-seater ICT lecture hall, equipped with computers and smartboards with dedicated power and water supplies. FUTO was selected for the project as part of the “institutional strengthening” in the catchment area of SPDC’s Assa North Ohaji South Gas Development Project. They were launched at a colourful ceremony attended by representatives of the Imo State Government and principal officers of the university.
Imo State Governor, Hope Uzodinma, represented by the Commissioner for Digital Economy and E-Government, Dr. Chimezie Amadi, said, “We deeply appreciate the efforts of our partners in NNPC, SPDC, Total Energies, and NAOC JV, who have invested in the future of Imo State by supporting this critical project. Your commitment to human capacity building aligns perfectly with our goals, and together, we will continue to drive innovation, skills development, and sustainable economic growth for our people.”
Okunbor’s address at the commissioning was read by General Manager, External Relations, Igo Weli, in which he expressed happiness “that the collaboration of SPDC, Joint venture partners, NCDMB, and FUTO has resulted in this successful social investment project that demonstrates our commitment to improving access to quality education for every Nigerian.”
On his part, the Executive Secretary NCDMB, Engr. Felix Omatsola Ogbe, called on Nigerian institutions to domesticate the advancements in AI and other technologies.
“Our AI must understand Igbo, Hausa, Efik, Yoruba, and other local languages,” he said, speaking through Dr. Ama Ikuru, the Director in charge of Capacity Building.
“We must leapfrog the innovations of other nations and become a net exporter of advanced technology to achieve the lofty ideals of Nigerian content development,” he added.
The Chief Upstream Investment Officer, NNPC Upstream Investment Management Services, Bala Wunti, said in his address which was read by the Senior Advisor Stakeholders Relations, Halimat Wilson, “Innovation thrives in an environment where ideas can be freely exchanged and developed. The Engineering Studio and ICT Hub is designed to be such a place where students, researchers, and faculty can collaborate on projects, share knowledge, and push the boundaries of what is possible.
Welcoming guests earlier, FUTO Vice Chancellor, Prof Nnenna Oti, thanked the sponsors of the project “for a landmark donation” to the university.
The Shell Companies in Nigeria have been education since the 1950s through scholarships and other initiatives. These efforts have resulted in the award of thousands of secondary, undergraduate and postgraduate scholarship awards, provision of educational infrastructure and establishment of sabbatical and internship programmes as well as centres of excellence in several universities.
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