Shares in Yangzijiang Maritime, the spin-off listing of Yangzijiang Financial Holding, is expected to list on the Mainboard of the Singapore Exchange (SGX) at 9am on Nov 18.
“We are pleased to reach this significant milestone to spin off Yangzijiang Maritime, which underscores our commitment to creating long-term shareholder value,” says executive chairman and CEO of Yangzijiang Financial, Ren Yuanlin.
“We are confident that this strategic move will accelerate the next phase of expansion for both Yangzijiang Financial and Yangzijiang Maritime… The spin-off enables two focused, SGX mainboard-listed platforms to pursue differentiated strategies and capital allocation policies,” he adds.
“Yangzijiang Financial will continue to sharpen its investment, wealth and fund management capabilities, while Yangzijiang Maritime, as a pureplay maritime investment platform, will leverage its proprietary pipeline and global network to capture opportunities across maritime cycles and deliver sustainable value to stakeholders,” Ren continues.
On Oct 31, the maritime investment business also announced its intention to raise $5.2 million via a private placement of 8.64 million shares at a placement price of 60 cents per share. Placement agreements have been signed with SAC Capital and China International Capital Corporation (Singapore). The net proceeds from the proposed placement of around $2.8 million after deducting professional fees and other listing expenses, will be used as working capital for Yangzijiang Maritime.
The proposed placement will be done via an exempt offering to institutional and accredited investors in Singapore. No prospectus or offer information will be lodged.
The placement shares represent about 0.25% of Yangzijiang Maritime’s 3.48 billion shares before the completion of the placement and about 0.25% of Yangzijiang Maritime’s enlarged share capital of 3.49 billion shares. The placement shares will not be placed with a director or substantial shareholder of the company.
According to Yangzijiang Maritime, the placement price was determined after discussions between the company and its joint placement agents and factored in, among others, the unaudited net asset value (NAV) of Yangzijiang Maritime Group as at June 30, immediately after the proposed spin-off.
Upon the completion of the distribution of Yangzijiang Maritime’s shares to Yangzijiang Financial’s shareholders, where shareholders get one Yangzijiang Maritime share for every Yangzijiang Financial share they own, the maritime business’ market capitalisation is expected to be around $2.0368 billion.
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Including the proposed placement, Yangzijiang Maritime’s market capitalisation is expected to be around $2.042 billion.
“The proposed listing offers Yangzijiang Maritime a timely opportunity to raise capital and position for its next phase of growth,” says Tan Kian Tiong, head of capital markets of SAC Capital. “With renewed market momentum, SAC Capital continues to bring companies with strong fundamentals to the market. As issue manager and joint placement agent of this listing, we expect Yangzijiang Maritime to garner strong investor interest, reflecting confidence in both the company and the optimism of Singapore’s capital markets.”
“It is a momentous moment for both entities, marking a new chapter of growth and independence for each company, but also highlights the depth and maturity of Singapore’s capital markets in supporting strategic corporate transformations,” adds Vincent Toe, CEO of iCapital Holdings (SG) and former CEO of Yangzijiang Financial.
“We are proud to have played a key role as the listing consultant of Yangzijiang Maritime. With both entities having distinct value propositions and growth potential, we look forward to supporting them on their respective journeys of growth and value creation ahead,” says Toe.
The books closure date for the distribution is Nov 11 at 5pm while Yangzijiang Maritime shares will be credited on Nov 17.
Management moves
Yangzijiang Financial has also announced several changes to its management on Oct 31.
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Ren Yuanlin will resign as executive chairman and CEO of Yangzijiang Financial to focus on Yangzijiang Maritime. Ren’s last day is on Oct 31. He has been in the role since April 28, 2024.
In an interview with The Edge Singapore, Ren said, “I am still the largest shareholder in Yangzijiang Financial. I will not abandon it. I’m open to working with the right partners to get the best opportunities for the company.”
Liu Hua, currently deputy CEO and CFO at Yangzijiang Financial, will become its executive chairman after the spin-off. Peng Xingkui, an investment adviser to Yangzijiang Financial, will be the new CEO.
Yangzijiang Financial also appointed Qian Jiang, finance director of Jiangsu Xinyang Ship Investment, as its new CFO. Jiangsu Xinyang is a subsidiary of Yangzijiang Shipbuilding.
Liu, Peng and Qian’s appointments are effective Oct 31.
At the same time, lead independent non-executive director, Chen Timothy Teck Leng, will step down on Oct 31. Per the filing, Chen, who was in the role since July 1, 2024, will be leaving to pursue other career opportunities.
Yangzijiang Financial has appointed Zhang Chengshuang (Kathy) as independent non-executive director. Zhang, who is presently a corporate advisor of Fangyuan Capital (Hong Kong) and an adjunct faculty member of the Lee Kong Chian School of Business at the Singapore Management University (SMU), has joined the board on Oct 31.
Shares in Yangzijiang Financial closed 1 cent lower or 0.94% down at $1.06 on Oct 31.a
