BEIJING, March 13 /Xinhua-PRNewswire/ -- With overwhelming growth of Chinese ventures' reverse mergers, DealFlow Media will hold their 2008 International PIPEs Conference in Hong Kong during April 8th to 10th. This three-day event covers everything about finance and law pertaining to going public and raising capital, focusing on China and investing in Asia-based companies. The conference includes presentations by more than 40 investors, investment bankers, and attorneys involved in assisting Asia-based companies with raising capital and going public.
China's State Administration of Foreign Exchange in the summer of 2007 issued the Circular 106 and created some panic among reverse merger practitioners. Many speculated the rules, which require companies setting up offshore entities for domestic investment to get approval from Chinese regulators, could reduce merger activity to a trickle if not bring it to a complete halt. However, 2007's deal data, especially the fourth quarter, illustrates that mergers are getting through in record numbers.
During 2007, more than one-third of all reverse mergers involved a Chinese venture and a U.S. shell company. A total of 69 Chinese companies reverse-merged with U.S. shells during the year, a 30% increase from 53 deals in 2006 and a 115% jump from 2005. Activity more than doubled during the fourth quarter alone to 28 mergers, up from 12 in the same quarter in 2006. 2007's Chinese mergers were valued at USD1.47 billion, with USD555 million of value created just by fourth-quarter transactions.
A merger between a shell company, Jade Mountain Corp., and a waste treatment company, Dalian Innomind Environment Engineering, was the largest Chinese deal of the last quarter of 2007. At the end of October, it was valued at USD144 million. Investors of Jade have seen their stocks risen dramatically. Closing at USD2.40 the day after the merger, Jade shares have risen by 338% to USD10.50 in early January. The merger also included a USD24.5 million private placement, making it the largest PIPE concurrent with a merger in the last quarter of 2007.
For more information about the conference visit: http://www.dealflowmedia.com or http://www.pipesconference.cn .
About DealFlow Media
Celebrating our 5th anniversary, DealFlow Media provides news and information of financial markets. DealFlow Media publishes financial research and directories addressing the information needs of investment professionals worldwide. The company also produces popular investment conferences in the U.S., Europe and Asia, as well as online seminars, which provide educational and networking opportunities for finance professionals.
Media Contact:
United States:
Eric Salvarezza
Tel: +1-516-876-8006
Email: eric@dealflowmedia.com
China:
Gao Zhen Ying
Tel: +86-10-8618-7286 or +86-13-9013-16631
Email: zhenying@dealflowmedia.com
