Major stake sold in Wang Yang

Business | Avery Chen 15 Aug 2019

Controlling shareholder and chairwoman of Wang Yang Holdings (1735) sold a 75 percent stake in the company at a discount of 47.62 percent to a new shareholder, who pledged the shares, barely a year-and-a-half after listing on the main board.

The Hong Kong-based firm principally undertakes foundation works, superstructure building works, and other construction works.

Trading of its shares were suspended on Friday, pending the release of an announcement which constitutes inside information on the company.

Chairwoman Tsui Kwok-ying and her concert party sold 198 million shares at HK$2.12 on Monday, 47.62 percent lower than the closing price of HK$4.05 before the halt of trading, while Huatai Securities acquired a security interest in those shares.

The retail tranche of its IPO was 742 times oversubscribed in March last year. Wang Yang raised HK$73.5 million after pricing its IPO at HK$1.5. Dakin Capital was the sponsor of the deal.

Wang Yang incurred a net loss of HK$10.8 million for the year ended March 31, its revenue fell 7.6 percent year-on-year to HK$199.2 million, according to its latest annual report.

In May, Tsui said the company had been through a difficult and challenging year. Its performance was vulnerable to various external factors, such as government's investment in infrastructure and property construction projects, tight labor supply and an increase in costs of labor and raw materials.

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