**PCCW (0008) DOWN ON WORRIES OVER BOND ISSUE**
Shares of telecoms and Internet firm Pacific Century CyberWorks edged down 1.1 percent to HK$2.25 on worries that the company's US$2.5 billion bond issue may not be well-subscribed.
"There is scepticism as to whether or not they can raise the amount that they would like to on the bonds," said Dipak Jathwa, an analyst at Prudential Bache.
On Monday, PCCW began marketing a US$2.5 billion, ten and 30-year bond offering that could be increased to US$3.8 billion, in a move to refinance some of its US$4.7 billion in bank debt.
The bond issue raised concerns that the company would see swelling interest costs in the short term.
Shares of PCCW have plunged more than 55 percent in the year to date, and are down 87.5 percent from its 52-week high of HK$18 in August last year.
0433 GMT ------------------------------------------------------------------ **SINOPEC (0386) UP ON "A" SHARE IPO PROSPECTS**
China's second largest oil company, Sinopec (SNP) (0386) , up 2.03 percent at HK$1.51 after it priced its A-share issue, the largest ever IPO on mainland stock markets, at the higher end of its indicative price range.
"Chinese investors will be quite receptive to the issue, given the lack of quality stocks available to domestic investors and the company's profitability," said Y.Y. Chan, an oil analyst with China Everbright Group in Hong Kong.
On Wednesday, Sinopec priced its 2.8 billion share offer at 4.22 yuan a share, raising 11.8 billion yuan ($1) for the company on the yuan-denominated domestic-only A-share market.
Sinopec stock has gained over 13 percent since May 4, when Sinopec was added to the Hang Seng 100 index () while the index has fallen about six percent over the same period.
Chan reckons Sinopec's A shares could climb as high as five yuan after listing, possibly boosting the Hong Kong-listed shares to between HK$1.60-1.70.
0403 GMT
(US$1=HK$7)
REUTERS
Rtr 00:56 07-12-01 Copyright 2001, Reuters News Service |
