Cathay Financial prices at a premium

The insurance conglomerate prices its GDR.

After seeing its share price slaughtered two days ago - it collapsed 6.8% to $39.80 - Cathay Financial managed to price its GDR at a 0.5% premium to its close yesterday. Few people can remember the last time a GDR from Taiwan has priced at a premium, marking a significant achievement for lead manager, JPMorgan.

The GDR was priced with each GDR unit worth $11.63, and on that basis represented a slight premium at NT$40 per share to the close of the underlying stock. Should the greenshoe be exercised the deal will raise $523 million - with monies being used to bolster capital in the insurance banking conglomerate...

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