NOL placement charters difficult waters

Singaporean shipping company receives a testing time from investors.

Neptune Orient Lines NOL completed a 236 million share placement yesterday Tuesday raising S$548 million $308 million to pay down debt. The deal was led by Credit Suisse First Boston, which beat about nine other banks that competitively bid for the transaction last Friday.

The investment bank is said to have pitched a 3% to 5% discount range to the stock's S$2.44 close on Friday and subsequently bought the deal over the weekend at a 5% discount, equating to S$2.32 per share. It is also believed to have been paid a 1% fee.

But once the stock was suspended on Monday morning and order books opened, the placement hit considerable resistance...

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