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ASX

Boyuan Holdings Limited Initial Public Offering Of Shares

Boyuan Holdings Limited (“the Company”), today announced that it has lodged its prospectus with ASIC for an initial public offer of shares in the Company at 20 cents per share to raise a minimum of $15 million and a maximum of $20 million. The Company has also submitted an application to the ASX for admission to the securities market operated by the ASX.

The Company will be valued at approximately $A70 million based on the offer price of 20 cents per share at the maximum subscription of $20 million under the prospectus. boyuan-property-image

The Company existing operations are located in Jiaxing, Zhejiang Province, China, where the Group is predominantly focused on developing a mixed-use commercial and residential property project known as the Jiayuan Central Plaza Project in the heart of a fast developing local town, Wangjiangjing in Jiaxing. The Company has also entered into agreements in respect of three property developments in NSW, in Austral, the Hunter Valley and Marsden Park.

  • The Company, through its subsidiary Boyuan Investment Holding Pty Ltd, has entered into agreements to acquire two parcels of land in the Hunter Valley Region of New South Wales, for the purposes of commercial property development.
  • The Company, through its subsidiary Boyuan Real Estate Holding Pty Ltd, has entered into an agreement to acquire a plot of land in Austral, NSW for the purposes of residential property development.
  • The Company has entered into an agreement to acquire the rights to an option to acquire a plot of land in Marsden Park, NSW for the purposes of residential property development.
  • The Company is also party to a sales and marketing agreement in respect of two property projects located in Lindfield and Marsden Park, NSW.

Commenting, the CEO of Boyuan Holdings Limited, Mr Yading Wan, said:

“Achieving a listing on the Australian Securities Exchange will be a key milestone for the Company as we expand into the Australian property development market. We see Australia as a key part of our international strategy. We believe that Australia’s combination of a stable government, a strong housing sector and skilled workforce provide Boyuan & our investors with significant opportunities.”

Boyuan Holdings Limited ASX: BHL

The Offer opens on 14 September 2016 and will close on 30 September 2016, with trading expected to commence on the ASX on 21 October 2016.

Details of the Offer are contained in the Prospectus lodged with ASIC. BlueMount Capital, with offices in Australia and Asia, is the Australian lead manager for the offer.

Investors interested in applying for shares will need to complete the Application Form in the Prospectus once the Offer opens. Investors should consider the Prospectus in its entirety and obtain professional advice before deciding whether to invest in the Company.

Once the offer opens, the Prospectus can be downloaded from BlueMount Capital’s Website at: www.bluemountcapital.com/BHL

Key Offer Statistics

  • Offer Price per share $0.20
  • Maximum number of shares available under the Offer 100 Million
  • Total number of shares (and equivalent shares) on issue as at the date of this Prospectus 250 Million
  • Number of shares on issue following the Offer based on maximum subscription 350 Million
  • Market capitalisation at Listing based on maximum subscription $70 Million
  • Offer Timetable 14 September 2016 – 30 September 2016
  • Offer opens 14 September 2016 Offer closes
  • 30 September 2016
  • Trading expected to commence on the ASX 21 October 2016

About Boyuan Holdings Limited

boyuan-logo

Boyuan Holdings Limited (“BHL”) conducts property development and management through its Chinese subsidiary (Jiaxing Boyuan Real Estate Development Co., Ltd) in Jiaxing, Zhejiang Province, China. It has recently completed the development of a mixed-use property complex, known as the Jiayuan Central Plaza Project, located in Jiaxing City, Zhejiang Province, China. BHL is currently focusing on future property development opportunities in Australia, in Marsden Park, the Hunter Valley and Austral NSW.

For more information on Boyuan Holdings Limited, visit: www.boyuan.com.au

ASX New Listing Rules Update

The Australian Securities Exchange (ASX) has recently established a Policy and Listing Standards Committee (Committee) to standardise a preliminary application review process for companies seeking listing on ASX.

According to information provided by ASX, the purpose of the Committee is to establish a mechanism to assess the eligibility and suitability of companies incorporated, mainly operating, or having a majority of their board or controlling shareholders resident, in an emerging or developing market for listing on ASX.

Previously, if a company met the conditions for admission set out in the ASX Listing Rules, the ASX would invariably admit the company on the official list of ASX, however, the proposed change to the admission framework now includes a merit based assessment.

In making such an assessment, the Committee will take into account several factors, including:

  • the structure of the company and the economic commerciality of its business;
  • location of the company’s business operations and where it generates revenue;
  • the capability and experience of the board of directors and management team;
  • the credentials of the company’s advisors, including its lawyers, accountants and corporate advisors;
  • the purpose of the company in pursuing listing on ASX – in particular, the company should be able to demonstrate a genuine capital market objective, ie to raise capital, including that
  • the company should be seeking to achieve a free float of at least 20%.

The Committee is conducting monthly meetings to review proposed listings including both “front door’ and ‘back door’ listings. It is recommended that Companies wishing to list on ASX, lodge a submission with the Committee as soon as possible in their listing process, setting out information dealing with the above factors. This will help avoid delays and unnecessary costs.

While ASX has yet to document the policies and procedures of the Committee, the Committee has begun operation and we will provide an update once ASX issues further information.

The ASX has confirmed that it will:

  • increase the consolidated profit requirement under the profit test for the 12 months prior to admission to at least $500,000;
  • increase the assets test thresholds to NTA of at least $5 million or a market capitalisation of at least $20 million.
  • introduce a 20% minimum free float requirement for ASX listings at the time of admission; and
  • increase the value of the parcel of securities to be held by each security holder from at least $2,000 to $5,000; and
  • to change the minimum spread requirement for ASX listings to require 100-200 security holders if the entity has free float (down from 300-400).
  • BlueMount is currently assisting a leading Chinese real estate developer which is in the final stage of its ASX listing with its compliance with the new requirements and its dealings with the Policy and Listings Committee.

If you have any concerns regarding ASX’s new Policy and Listing Standards Committee, or require assistance communicating with ASX regarding your plans to list, please contact us.
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