I Don't see why not! ...................
To market Newco and the portal, and to ensure it has a strong cash balance sheet for further working capital, New Tel is planning to raise US $200 million to fund the development of the business through a public offering on the Nasdaq market in the US placing 100 million $2 shares.A further $20 million will be raised from Australian investors in a placement and rights issue of16.6 million $1.20 shares.
New Tel, whose backers include Mr Rodney Alder and Sir Laurence Street, has no name for the ISP as yet but has already registered several domain names for the portal including newchina.com, reddragon.com and nihow.com (nihow means hello in Mandarin). Until a name is settled upon, the ISP will be known as Newco.
Nov. 23 Mr. Robin Armstrong, a senior advisor with Findlay & Co Stockbrokers, said that the firm had almost completed the $20 million local placement and believed it would have absolutely no problem in placing the 100 million $2 shares, " The institutions are knocking down our doors and we're already recieving phone calls about the 200 million placement."
When all placements are complete, the number of New Tel shares on issue would swell from 90 million at present to 400 million, giving the company a market capitalisation of close to $1 billion. Rival China.com is capped at US 2.5 billion ($3.9 billion) |
