Dongyue in $3.5b sale

Dongyue (0189) intends to raise HK$3.5 billion through a share placement with the price ranging from HK$22.80 to HK$23.80 per share.

That is a discount of at least 11.19 percent to the closing price of HK$26.80 on Tuesday and the chemical company said it will use the proceeds for production capacity increase and general operating purposes.

The 145 million shares account for 6.4 percent of its enlarged share capital.

Its share price soared 13.8 percent to a one-year high yesterday after posting a positive interim result on August 30.

UBS raised Dongyue's target price by 71 percent to HK$30 and raised its adjusted earnings per share forecasts for the next three years by 32.2, 53.4, and 36.5 percent respectively.

Dongyue's net profit in the first half rose 49.3 percent to 603 million yuan (HK$726.3 million) with earnings per share of 29 fen.

The stock price has risen 45 percent cumulatively in the past month.

Victor Zhong and Bloomberg

Temasek-backed Lu Daopei Medical is mulling over a HK$3.9 billion initial public offering, IFR under Reuters reported.

Founded in 2001 by expert Lu Daopei, the mainland medical group focuses on hematology and bone marrow transplants. It operates five medical institutions.

It has completed a Series B round of financing, led by Singaporean state-owned fund Temasek Holdings and including Investcorp, worth more than 500 million yuan (HK$602 million).

The listing application is expected to be submitted as early as this year.

That came as Helens International, which says it is China's largest pub chain, started book-building, which ends Friday. The minimum investment is HK$10,464.

It has attracted HK$279 million through margin financing for its retail tranche on Tuesday, marking an 8.67 times oversubscription. The debut is on September 10.

That came as the Ant Group's aspiration to revive its IPO could be jeopardized by recent investigations into Hangzhou's top political leaders. An IPO relaunch may falter "as Beijing's probe into Hangzhou's power structure stirs up legal woes, aggravated by a warning about '996' work culture" - a reference to Chinese companies' tendency to drive staff to work overtime - BI analysts led by Francis Chan wrote in a note on Tuesday.