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 from investors...

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