Latin America and Oil: The Good, The Bad and The Ugly. Part 3: The Ugly
6 April, 2016
Euromoney Innovations in Islamic Finance 2016
25 April, 2016Euromoney, April 2016
On April 11, a draft prospectus appeared on the Hong Kong Exchanges and Clearing website for a company called DFZQ. The 568-page Application Proof, as draft prospectuses are known on HKEx, is heavily redacted on timetable and amount, but illuminating all the same: DFZQ is better known in English as Orient Securities, the Chinese capital markets house, and it is thought to be seeking as much as $1 billion.
The proposed deal catches the eye for several reasons. The first is that Orient is Citi’s securities joint venture partner: it holds 66.67% of Citi Orient, and Citi 33%. Citi Orient is one of the handful of JVs, alongside UBS Securities, Goldman Sachs Gao Hua and Zhong De Securities (which partners Deutsche Bank and Shanxi Securities), that is doing well both in terms of deal volume and profitability. According to data from the Securities Association of China, as of June 30 2015, Citi Orient ranked second among foreign JVs for net profit (albeit only Rmb162.8 million ($25.1 million) – there’s still not a huge amount of money to be made in these ventures), second for total revenue, third for underwriting fees and ranked top for financial advisory fees and second for M&A fees.
Full article: http://www.euromoney.com/Article/3545889/Orient-IPO-brings-Citi-partner-to-Hong-Kong-market
