Capital Alliance anticipates over-subscription
Capital Alliance Group Inc CPT
Shares issued 4,942,406 Mar 31 close $4.20
Mon 3 Apr 2000 News Release
Mr. Toby Chu reports
Further to Stockwatch news of Feb. 14, 2000, Capital Alliance provides the
following progress report on the recent developments on its subsidiary SE
Global Equities Company (SEG). The company has previously announced its
intention to sell 22 per cent of its equity interest in SEG through a
pre-IPO subscription for $10-million (U.S.). As of today, the company has
received an overwhelming response for the global investment communities to
their pre-IPO subscription offering. Based both on subscription commitments
already received, and firm expressions of interest from major financial
institutions, the company fully expects that this offering will be
over-subscribed. Of the initial $10-million (U.S.) offered, the company has
received commitments of $8.68-million (U.S.) for two international
institutional investors who have requested this action. All necessary
documentation and formal share subscription agreements are now in
circulation to all parties. The allocation of the pre-IPO funding is as
follows:
A total of $3.68-million (U.S.) has been fully subscribed by friends,
family and associates of the company and current shareholders of the
company.
A total of $5-million (U.S.) has been committed from institutional
investors including the following:
SEG's Hong Kong listing Sponsor & Underwriter, ICEA Capital LImited, a
subsidiary of Industrial Commercial Bank of China (ranked as the third
largest bank in the world in 1998);
Three technology and equity fund companies with headquarters in Malaysia,
Europe and United States;
Two private investment banks from Switzerland.
A total of $2-million (U.S.) has been reserved for two other international
institutional investors. These investors are two of the largest investment
conglomerates in Asia, one being the largest Chinese investment
conglomerate in Hong Kong with the headquarters in Beijing China, and
another from Hong Kong. The investments are pending approval by the
respective parties' legal counsel and their internal review process.
To accommodate the requests by these institutions, and to facilitate the
work in progress which includes the approval process by regulatory bodies
and legal counsels from various international jurisdictions, the company's
previously reported date of the pre-IPO closing for March 24, 2000, has
been postponed until second week of April, 2000.
As stated, the overwhelming response from the global investment communities
will most likely cause SEG's pre-IPO subscription to be over-subscribed.
However, the company confirms that despite the expressed interest in this
offering, it has no intention to accept funds which will result in an
over-subscription, nor will it allow any dilution of SEG's holding interest
by more than 22 per cent as previously reported. In anticipation of the
over-subscription, the company will take any steps necessary to
proportionately scale back and refund portion of the monies received.
Further reports will be provided in due course. The company's consolidated
cash balance including the aforementioned pre-IPO placement by April 30,
2000, is projected to be $18.75-million (Canadian).
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