Beijing Enterprises brings rare China EB

Red chip breaks lock-up to raise new cash.

Beijing Enterprises Investment Ltd BEIL, the investment holding company controlled by the Beijing municipal government, raised $118 million on November 30 from an exchangeable into its Hong Kong listed subsidiary Beijing Enterprises Holdings Ltd BEHL.

The Deutsche Bank-led deal represents the only equity-linked offering by a Chinese entity so far this year. It has also come at a time when equity-linked issuance from Asia remains extremely thin, with issuance levels for the year still at roughly half of 2004 levels.

These two factors combined helped ensure a strong take-up for the deal, which closed eight times subscribed after a 90 minute bookbuild. About 100 investors...

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