Sign of the Times: Yancoal Gets Few Takers

first_imgSign of the Times: Yancoal Gets Few Takers FacebookTwitterLinkedInEmailPrint分享The Australian:Yancoal Australia’s $US2.35 billion ($3bn) equity raising has met with next to no interest from institutional and retail shareholders, leaving its underwriters and Chinese backers on the hook for almost the entire amount.Yancoal, which needed the cash to complete its acquisition of Rio Tinto’s Coal & Allied business in NSW, only attracted $US4 million worth of applications from its existing non-Chinese share register while institutional investors applied for just $US59m of the more than $US1.3bn in entitlements up for offer under a bookbuild at the weekend.The weak appetite means Yancoal’s existing major shareholder, Chinese state-owned group Yanzhou Coal Mining Company, will take up the full $US1bn in new shares to which it had committed while the bookbuild’s underwriters — China Shandong Investment, Cinda International and Glencore — will take up the remaining $US1.28bn.While there was an expectation going into the raising that Yancoal would have to rely on its underwriters for much of the funding, the response was nevertheless weaker than expected.The flat investor response to the raising has been blamed on a confluence of factors, including Yancoal’s poor record of performance in Australia (it has recorded four straight years of losses totalling more than $1.6bn), the dominant position held on Yancoal’s share register by Chinese interests, and the broader softening of investor interest in coal generally.The raising also took place at a time when many investors are tipping a fall in coal prices following a strong 12 months for the commodity.In one potential sign that the coal market may be nearing a peak, veteran coal investor Tony Haggarty yesterday revealed he had just sold almost 2 million shares in coal producer Whitehaven Coal for $6.4m, cashing out a portion of his holdings at a time when Whitehaven shares are at their highest level since 2013.Coal heavyweight Glencore, which is helping fund the Yancoal acquisition, yesterday announced it was putting up for sale its Rolleston thermal coalmine in Queensland. The sale process for the mine, which produced 13.3 million tonnes of saleable coal in 2016, is being handled by Merrill Lynch.Contango Asset Management managing director George Boubouras told The Australian the combination of Yancoal’s China-heavy share register and the wider shift away from coal among many investors were probably to blame for the weak uptake.More: Yancoal’s $3bn equity raising shunned by investorslast_img read more

OJK shuts down Jouska, two other investment firms

first_img“We’ve asked PT Jouska to settle the disputes with its clients transparently and invite the customers to settle the issues,” the task force said in a press statement. “We ask Jouska to process its licenses in line with its business activity as soon as possible.”The task force revealed that Jouska received a license as an education-services company through the Online Single Submission (OSS). It further said in the statement that Aakar had accepted the decisions.The case was uncovered when several clients and former clients of Jouska, which claims to be an independent financial advisory company and which gained its popularity among young investors via social media, took to Twitter, saying Jouska’s decision to invest their funds in low quality stocks had resulted in a slump in their portfolio values by more than 70 percent.A former client also uploaded an offering letter and a contract he received from the company when using its services in 2018 and 2019. The Financial Services Authority (OJK) has instructed financial advisory company PT Jouska Financial Indonesia to cease operations over allegations of illegal stock brokerage and investment mismanagement.The OJK’s Investment Alert Task Force also shut down PT Mahesa Strategis Indonesia and PT Amarta Investa Indonesia, which are alleged to have provided investment management services and financial advice without proper licenses. It has also blocked all three companies’ websites, applications and social media accounts through the Communications and Information Ministry.The decision was made after the task force summoned and questioned Jouska CEO and founder Aakar Abyasa Fidzuno following complaints on social media from its clients. The offering letter stated that aside from educating the client and helping them to pick the right investment instrument based on their profile, Jouska would have the right to manage the client’s funds, as well as to buy and sell stocks in their portfolio. The client then entered into a fund-management contract with Amarta Investa while others said they signed a contract with Mahesa Strategis.The Jakarta Post has learned that Jouska, Amarta Investa and Mahesa Strategis are not registered as investment-management companies or securities companies at the OJK.“Independent financial planners are not allowed to sell a financial product or investment management service to their clients,” financial planner Safir Senduk told the Post over the phone on Wednesday.The International Association of Registered Financial Consultants (IARFC) Indonesia has stressed that a financial advisor is prohibited from managing clients’ funds and trading stocks in their portfolios even with full discretion and consent from the clients.“We have to be proactive so we are now establishing a task force to list those who are claiming to be a financial planner but are actually in violation of the code of ethics,” said IARFC Indonesia chairman and president Aidil Akbar Madjid said on Thursday.“We hope the people who want to use financial planners’ services will be aware of which ones are licensed and which are not,” he said, adding that the profession was still self-regulated and yet to be regulated by the OJK.The Jouska case shared a similarity with the investment mismanagement that led to a corruption case involving ailing state-owned insurer PT Asuransi Jiwasraya, as both had used other parties’ funds to invest in questionable stocks, said University of Indonesia (UI) capital markets expert Budi Frensidy on Thursday.“[Jouska] case’s impact may be small on our stock market, but it can discourage new and potential equity investors from trying to invest,” he said.He suggested investors choose reputable and licensed asset-management firms to help them manage their investments if they do not feel confident enough to manage their own funds.Jouska’s clients shared on social media their portfolio details revealing that the company invested the majority of their funds in newly listed computer hardware-trading company, PT Sentral Mitra Informatika, trading on the Indonesia Stock Exchange (IDX) under the code LUCK. Advisors at Jouska are also reported to have prevented clients from selling the shares when the prices had dropped more than 80 percent, an allegation that has neither been denied nor confirmed by the company.Sentral Mitra, which was listed on the bourse on Nov. 29, 2018, saw its share price increase exponentially from Rp 285 (2 United States cents) to its highest level of Rp 2,020 apiece just around eight months after its IPO. Sentral Mitra’s share price has since dropped to near its IPO price, trading at Rp 322 on Friday.Jouska previously claimed in a written statement that it always informed clients of all economic, industry and corporate analyses, including the risks in every financial decision. It also denied the claims that Jouska had full access to its clients’ securities accounts and had managed their funds.“We are now building a credible and trusted capital market. [On that basis,] we call on people who want to invest in the capital market to always check out whether or not an advisor, investment manager or broker has a license,” the task force chairman, Tongam L. Tobing, said on Friday. (prm)Topics :last_img read more

Update on the latest sports

first_img June 28, 2020 Associated Press Share This StoryFacebookTwitteremailPrintLinkedinRedditMLB-NEWSAP source: Yankees vs champ Nationals in DC on opening dayUNDATED (AP) — Gerrit Cole could make his New York Yankees debut in an opening-day treat for fans, facing Juan Soto and World Series champion Washington at Nationals Park. NASCAR-POCONOJones dodges wrecks to win 1st career Truck race at PoconoLONG POND, Pa. (AP) — Brandon Jones surged down the final two laps to win a wreck-filled Truck Series race in the first of three NASCAR races Sunday at Pocono Raceway. The Truck race was rained out Saturday, forcing the move to early Sunday. Jones won his first Truck race in 46 career starts and in his first start since last season.Jones had a quick turnaround Sunday, starting seventh in the Xfinity race, the second event of the day. That is being followed by the Cup Series race. Kevin Harvick is trying for Cup victories on consecutive days at the Pennsylvania track.center_img A person familiar with the game says the Yankees and Nationals are set to meet when the virus-delayed season begins next month. The person spoke to The Associated Press on condition of anonymity because there hasn’t been an official announcement. The New York Post first reported the matchup.Cole started the previous game played at Nationals Park. He pitched the Houston Astros past the Nationals 7-1 last October for a 3-2 edge in the World Series. Major League Baseball will start a 60-game season on July 23 or 24. The schedule is still being worked out — there could be a game or two on the first day of play, or a full slate.In other baseball news:— The Texas Rangers say several of their employees have tested positive for COVID-19 in the last few days. The team said anyone who had direct contact with those affected was sent home from Globe Life Field. The Rangers said no one will be allowed back inside without receiving a negative test for the coronavirus. The club is set to begin another round of training at the ballpark next week. The team said pandemic protocols are in place for front office employees at the new ballpark that’s set to open when the season begins. Update on the latest sportslast_img read more