The stock price of ND paper (02689) has dropped by over 5% again, with a cumulative drop of over 18% this month. As of press time, it has fallen by 4.83% to HKD 3.35, with a turnover of HKD 21.4211 million.
According to the Wisdom Financial APP, the stock price of ND paper (02689) has dropped by over 5% again, with a cumulative drop of over 18% this month. As of press time, it has fallen by 4.83% to HKD 3.35, with a turnover of HKD 21.4211 million.
On the news front, in early June, ND paper announced that it will issue a total of US$400 million in preferred perpetual capital securities with an annual interest rate of 14%. It is worth noting that the majority of the securities have been subscribed to by ND paper's director, Zhang Yin, and her brother, Zhang Chengfei, as well as Zhang Yin's son, Liu Jinsong. There is also a provision in the bonds: if the bondholders do not redeem the bonds within 30 days after a change in control of the company, the bond's annual interest rate will increase by 5%.
According to the Daily Economic News, some investors questioned the possibility of benefiting from the issuance. On the morning of June 5th, a Nd Paper employee explained to reporters over the phone that the pricing was based on the public prices in the market, "referring to preferred perpetual capital securities of similar type issued in US dollars by general private enterprises without ratings, which are actually in this range." Regarding the doubts of some shareholders, the person in charge stated that there is no response to individual opinions.