China Milk issues convertible nine months after its IPO

The Chinese cattle breeding company raises twice the IPO proceeds after its share price doubles. The conversion premium is the highest by a Singapore issuer this year.
China Milk Products Group, which listed in Singapore in March, has returned to the capital markets to raise another $150 million through the sale of convertible bonds to finance its ongoing expansion.

The Deutsche Bank-led issue saw healthy demand even though the share price has more than doubled from the S$0.62 initial public offering price, which allowed the $22 million upsize option to be exercised immediately. At the final $150 million size, the bond issue accounted for about 16% of the company and was twice the size of the earlier IPO.

According to a source, more than 60 investors participated in the deal which was offered with a fixed conversion premium of 45% above...
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