On 16 Jul 2008, SJM Holdings Limited (0880 HK) listed on the Hong Kong Stock Exchange. Its opening price, at HKD 3.08 per share, equaled its IPO price. The stock closed at HKD 3.04 per share, down 1.3%.

The company has announced that there are 11,490 subscribers ready to purchase a total of 147 mln shares. It plans to issue approximately 1.25 bln shares at the price of between HKD 3.08 to 4.08 per share, which will enable it to raise up to HKD 5.1 bln. It will allot 85% of the shares to international investors and the remaining 15% will be sold to the public. Deutsche Bank is the underwriter of its IPO in Hong Kong.

Dr. Kenny Tang, director of Tung Tai Securities, stated that as mainland China has tightened its visa control to Macao, the company's performance may not be encouraging in the near future. As it is a major company in the gambling industry in Macao, Kenny Tang estimated that the stock may rebound to near HKD 3.00 per share.

Source: China Securities Journal

Date: 17 Jul 2008

CN01/BG/RZ/KM