A new Initial Public Offer (IPO) offering Australian investors an ASX listing and access to China’s vast credit card and e-commerce transaction market has closed heavily oversubscribed.
Proponent of the IPO, Shenzhen-based software technologist, TTG, announced today applications received had oversubscribed the Offer’s maximum subscription.
The Offer by TTG – co-chaired by Sydney-based Mr Chris Ryan - provided for two million CHESS Depositary Interests (CDIs) at A$0.60 per CDI to raise A$1.2 million, with an allowance for oversubscriptions of a further A1.2 million, for a total of four million CDIs and a raising of $2.4 million.
“This is an outstanding result. It reflects the recognition by Australian investors of the untapped growth potential of the Chinese economy, particularly the just completed regime change last week which elevated Xi Jinping to the top position as the ruling Communist Party’s General Secretary with a clear mandate to push ahead with economic reforms, “ Mr Ryan said.
“It also recognises that the Asian corridor from China south through South East Asia, is to become the pivotal heart of global commerce over the next decade and the volume of China-based e-commerce transactions will be voluminous – paralleled only by the anticipated roll-out of the TTG technology to other selected international transactional hubs,” he said.
“At the Chinese domestic level, it also strongly reflects the pace at which more Chinese are gaining access to the Internet and changing and expanding their buying habits through e-commerce based transactions.”
The size of the offering represents just 0.6 per cent of TTG’s issued shares of nearly 635 million. The proposed Australian listing of the Company is now expected on 27th November 2012, and will be part of an overall estimated A$380 million listing value for TTG which plans to free trade its full shareholding within two years of the ASX listing.
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