Brief Utlilities: China Gas Placement – Larger Deals Traded Flat but Good Track Record Should Help and more

In this briefing:

1. China Gas Placement – Larger Deals Traded Flat but Good Track Record Should Help

1. China Gas Placement – Larger Deals Traded Flat but Good Track Record Should Help

A shareholder of China Gas Holdings (384 HK) is looking to sell about 142m shares worth approximatel US$443m. This is a clean-up trade.

The deal scores well on our framework owing to its pristine track record of outperformance and decent earnings momentum. It is also a clean-up trade, hence, no overhang on its share price.

However, the performance of prev deals show that placements larger than HK$3bn tend to perform flat over one-month period whereas placements with smaller deal size did well.