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Tag: ipo

  • Airline Sriwijaya Air offering Initial Public Offerings (IPO) in Indonesia

    Airline Sriwijaya Air offering Initial Public Offerings (IPO) in Indonesia

    Currently, Sriwijaya Air serves 46 domestic routes as well as seven international routes in the Asia Pacific with 51 narrow-body Boeing jets. With the larger fleet (after additional airplanes are purchased), the airline wants to add several domestic and regional routes as well as one to Jeddah (Saudi Arabia).

    Chandra Lie did not inform how much the company expects to raise from the initial public offering on the Indonesia Stock Exchange (IDX). In February 2011 Indonesia’s national flagship carrier Garuda Indonesia conducted an IPO on the IDX in which it raised IDR 3.3 trillion (approx. USD $252 million) by selling a 28 percent stake.

    Sriwijaya Air, founded by the brothers Chandra Lie and Hendry Lie in 2003, is Indonesia’s third-largest airline, controlling about ten percent of the domestic air passenger market. It currently carries about 800,000 passengers per month. The airline will move its administration and operational activities to the Cengkareng Business City complex from its current base at the Soekarno Hatta International Airport.

    The aviation industry in the Asia-Pacific region remains among the world’s fastest growing regions in terms of air passengers. Recently, the Indonesia National Air Carriers Association (INACA) says, whereas worldwide the number of air passengers is growing at a pace of nearly 7 percent (y/y), Indonesia’s air passenger growth is estimated at around 15 percent (y/y) in 2016.

    Number of Air Passengers in Indonesia 2011 – 2015:

    2011 2012 2013 2014 2015
    Air Passengers
    (in million)    		 62.4 66.4 68.6 72.6 82.4

    Source: BPS

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  • Shanghai Laiyifen IPO to fund expansion

    Shanghai Laiyifen IPO to fund expansion

    Shanghai Laiyifen, the owner and operator of a chain of snack food stores in China, has completed an IPO in Shanghai, listing on Wednesday.

    Laiyifen is the first Chinese company specialising in snacks to go public. On the same day its massive advertising hoarding in New York’s Times Square was unveiled.

    shanghai-laiyifen-ipo

    After 17 years, the company has transformed itself from a small snack shop on a Shanghai street into a robust snack foods business, drawing the attention of both domestic and international media organisations by creating a buzz in Shanghai and New York simultaneously.

    Laiyifen opened its first store in 1999 and has since established a network of 2271 outlets across more than 10 Chinese provinces and municipalities, including Jiangsu, Zhejiang, Anhui and Shandong provinces, and the cities of Shanghai, Tianjin and Beijing.

    In addition, the company has deployed an omnichannel marketing model combining online with offline operations. With over 13 million loyal members, Laiyifen boasts annual sales in excess of RMB3 billion (approx. US$450 million) and has served over 450 million consumers in the aggregate.

    Wednesday’s listing raised some RMB660 million (US$98.3 million) by issuing up to 60 million shares (25 per cent of its post-issue share capital), and appointed China Securities as lead underwriter.

    Laiyifen’s controlling shareholders and actual controllers have all made a commitment to restrictions on the number of shares they can hold. The company’s other shareholders have, as well, made a commitment to voluntary lock-up of shares in their possession.

  • BRI Syariah plans to conduct IPO

    BRI Syariah plans to conduct IPO

    PT Bank BRI Syariah, a sharia compliant subsidiary of state lender Bank Rakyat Indonesia, plans to conduct an initial public offering (IPO) of its shares in 2018 to boost alternative funding sources.

    “During the IPO we will float our shares worth Rp1 trillion to the stock exchange,” BRI Syariah President Director Moch. hadi Santoso said after a press conference here on Wednesday.

    The decision to turn the bank into a publicly listed company was taken to strengthen capital structure particularly at “Tier 1”, he said.

    The bank wants to strengthen its capital through various funding sources to expand its financing business. Moreover, the bank wants to expand its financing portfolio from retail and business segments to infrastructure financing, he said.

    “After the IPO, we will continue to expand our business. This year we have been engaged in infrastructure financing,” he said.

    Also this year, the bank has explored several commitments for infrastructure financing. But its amount is not yet significant to boost the business growth of PT Bank Rakyat Indonesia Ybks subsidiary,” he said.

    The BRI Syariah has set itself the target of boosting its financing growth at 13 percent year on year from to Rp18.8 trillion from Rp16.5 trillion at the end of this year.

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  • Miss Sixty parent plans IPO

    Miss Sixty parent plans IPO

    Miss Sixty parent in Asia, Chinese fashion house Trendy International Group, is planning a domestic initial public offering, probably by the end of next year.

    The Guangzhou-based company hopes to achieve a valuation of about US$5 billion before selling an undisclosed stake, insiders say. Trendy International will join other Chinese clothing retailers such as Modern Avenue Group, owner of the Canudilo brand, and Shanghai La Chapelle Fashion in funding expansion by selling shares.

    Altogether, 25 apparel companies have held IPOs in China and Hong Kong during the past three years, raising a combined $2.2 billion, according to Bloomberg.

    Investment firm L Capital Asia, backed by French luxury group LVMH, bought a minority stake, estimated at about 10 per cent, in Trendy International for nearly $200 million in 2011.

    Founded in 1999, Trendy International owns women’s brands Five Plus and Ochirly as well as male casualwear line Trendiano. It later acquired the Asian business of Miss Sixty, known for its skin-tight retro jeans, as well as the Energie and Killah denim brands.

    The fashion group has more than 3000 shops, and last year set up a joint venture with UK clothing chain SuperGroup to introduce its Superdry brand into China.

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  • Capital Financial Indonesia Eyes Rp 715b From July IPO

    Capital Financial Indonesia Eyes Rp 715b From July IPO

    Sinarmas Sekuritas was appointed as the lead underwriter of the company’s share sale, with assistance from Jasa Utama Capital, Yulie Sekurindo, Phillip Securities Indonesia, Panin Sekuritas, Valbury Asia Securities and Erdikha Elit Sekuritas.

    Kirana Cemerlang Abadi currently owns 99.9 percent of the company’s shares. If the IPO plan goes smoothly, Kirana’s holding will be diluted to 52.38 percent.

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  • Vodafone said to plan $2.5b India IPO in Q4

    Vodafone said to plan $2.5b India IPO in Q4

    Reports indicate that Vodafone is preparing to conduct an IPO of its Indian business in the fourth quarter that could raise as much as $2.5 billion.

    The operator is expected to file a draft prospectus for the IPO in August, citing sources close to the deal.

    According to the report, Vodafone has hired Bank of America, Kotak Investment banking and UBS AG as the global co-ordinators for the IPO. The bank selection process commenced in April.

    With a potential value of up to $2.5 billion, the IPO would be India’s largest public listing since 2010. Previous reports indicate that the value of the offer could be much larger, to the extent that the IPO has the potential to be India’s largest ever float.

    Vodafone has been considering an IPO of its Indian operations for years, but the process has been complicated in part by disputes with the government over tax demands and the merger of its operating businesses.

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  • Hotel Lotte IPO expected to become S. Korea’s biggest offering

    Hotel Lotte IPO expected to become S. Korea’s biggest offering

    South Korean retail giant Lotte Group’s hotel unit said Thursday it will go public on the KOSPI market on June 29, which is expected to fetch over 5 trillion won (US$4.19 billion) to mark as the nation’s largest-ever initial public offering (IPO).

    Hotel Lotte Co. said in a regulatory filing that it will offer 47.85 million shares at a range between 97,000 won to 120,000 won per share.

    The offering is estimated to be around 4.6 trillion to 5.7 trillion won, and its medium range of price would surpass the record amount of 4.9 trillion sale by Samsung Life Insurance Co. in 2010. 

    Hotel Lotte, the world’s No. 3 duty-free operator, said it will use the fund to step up its duty-free business, hotel chain and theme park to offer comprehensive options to travelers.

    “Hotel Lotte will use the IPO fund to invest in expansion of duty-free stores at home and abroad to become the world’s largest duty-free operator,” the company said in a statement.

    The duty-free business is the company’s key source of income, accounting for 86 percent of its total sales.

    Starting from next month, Hotel Lotte plans to hold a series of deal roadshows in major cities, including New York, London, Singapore and Hong Kong, according to company officials.

    The listing of Hotel Lotte is one of the reform pledges that Lotte Group Chairman Shin Dong-bin has made as part of efforts to improve corporate image after a bitter family feud for control of the retail-focused conglomerate, which has sprawling businesses both in South Korea and Japan.

    The prolonged family feud has virtually come to an end as the founder’s second son and incumbent chief won shareholder support in March to tighten his grip on the nation’s fifth-largest conglomerate.

    On Thursday, Lotte founder Shin Kyuk-ho, who was undergoing a mental competence evaluation to prevent a legal guardian appointment, abruptly rejected the procedure and left Seoul National University in just three days of hospitalization.

    In December, the 94-year-old founder’s younger sister requested a Seoul court to name her as his legal guardian, claiming her aging brother was no longer capable of making consistent decisions.

    As a result, the aged tycoon was unseated from board seats at major affiliates during a shareholders’ meeting in March.

    Experts say Shin’s early discharge from the hospital has raised the likelihood of his sister becoming his legal guardian.

    “The case of dementia requires at least two weeks of hospitalization for examination. His discharge from hospital in just three days means that officials could not proceed with normal procedure,” Lee Hyun-kon, the lawyer for Shin’s younger sister, said. “The possibility of (the court’s) appointment of a legal guardian for Shin has risen as he could not prove that there’s no problem with his mental health.”

    Dong-joo has claimed he is his father’s hand-picked successor, but Dong-bin argued that his father is unable to make reasonable judgments due to mental health problems.

  • Indonesia AirAsia to Go Public

    Indonesia AirAsia to Go Public

    Budget airliner PT Indonesia AirAsia—the subsidiary of Malaysian AirAsia Berhad—is preparing to hold an initial public offering on the Indonesia Stock Exchange in late 2017 or early 2018. Before going public, the airline will seek to improve its finances.

    “We are improving our financial performance. We cannot say yet what the improvements are,” president director Sunu Widyatmoko told yesterday.

    He did say that the IPO proceeds will be used to increase AirAsia’s number of fleet and flights.

    Based on the financial statements of AirAsia Berhad, which owns 49 percent stake in Indonesia AirAsia, the subsidiary posted negative performances last year with revenues dropping 37 percent to Rp5.02 trillion.

    The main reason for the income decline was a decrease in passengers’ volume by 22 percent.

    In December 2015, Indonesia AirAsia recorded a loss of Rp885.2 billion and a net loss of Rp2.33 trillion. It was an even bigger loss compared to 2014, when the company noted a loss of Rp635.8 billion and a net loss of Rp883.5 billion.

    The airliner also recorded a foreign exchange loss of Rp1.27 trillion last year, which prompted its Malaysian parent company to inject an additional capital of Rp2.05 trillion in quarter three, in the form of perpetual capital securities.

    Sunu said that another cause for last year’s major loss was the Flight QZ8501 disaster. The plane crashed while en route from Surabaya to Singapore, claiming the lives of 155 passengers and seven crew members.

    AirAsia Berhad CEO Tony Fernandes said the two main reasons why Indonesia AirAsia needs to become a listed company is to improve transparency and corporate management, and to allow Indonesian investors to own the airliner’s shares.

    Fernandes also said in Jakarta earlier this week that Indonesia AirAsia had gone through rough times last year, but the company now aims to leave that past behind and focus on business expansion.

    In mid-2015, Indonesia AirAsia is one of 13 airlines ordered by the Transportation Ministry to raise capital due to its negative equity. At that time, Indonesia AirAsia’s equity was minus Rp1.32 trillion, with liabilities amounting to Rp6.15 trillion and an assets value total of Rp4.83 trillion.

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  • Indonesian online retailer Bhinneka plans IPO to fund expansion

    Indonesian online retailer Bhinneka plans IPO to fund expansion

    Indonesian online retailer PT Bhinneka Mentari Dimensi is planning an initial public offering (IPO) in 2018 to widen its reach, one of its directors said on Thursday, as the e-commerce battleground heats up in Southeast Asia’s biggest economy.

    The e-commerce market in the country of 250 million people is ripe with potential but it is fragmented and comes with complex regulatory and logistical barriers.

    “Our objective to go public is for scaling,” director Andi Boediman said, adding that the company plans to expand its store network and strengthen its supply chain while investing in technology and marketing.

    The company operates online through Bhinneka.com, with customers able to have purchases delivered to their homes or its physical stores, which also serve as retail outlets for the electronic goods specialist.

    Bhinneka is in a good position to attract investors, Boediman told reporters on the sidelines of a conference in Jakarta.

    “We are an online retailer that is focused and reasonably sizeable,” Boediman said, adding that revenue “at least doubled” last year and that he expects a strong performance in 2016.

    Bhinneka decided to pursue an IPO in Indonesia because it can be a dominant player on its home ground, Boediman added. He declined to disclose how much the IPO is expected to raise or the company’s financial figures.

    The company’s domestic rivals include SoftBank-backed Tokopedia, Blibli and Indonesian conglomerate Lippo Group’s MatahariMall.com. Lippo is also considering an IPO for its e-commerce business, a director said in February

    The Indonesian market is still growing while being supported by a large consumer base, said David Rimbo, managing partner for transaction advisory services at Ernst & Young in Indonesia.

    “I think the timing is right for Indonesian players to actually realize basically decent valuations,” he said.

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  • Vodafone said to start preparations for Indian IPO

    Vodafone said to start preparations for Indian IPO

    The company has asked interested investment banks to sign NDAs so it can provide more detailed information about the unit, citing people familiar with the matter.

    Vodafone may be ready to pick advisers by next month, the sources said. Around 10% of the Indian unit could be sold as part of the IPO. Vodafone India has a potential valuation of around $20 billion, which would make the IPO the largest in India to date.

    Vodafone has been planning to conduct an IPO for Vodafone India for some time, but macroeconomic, regulatory and market conditions have stood in the way.

    On the record, Vodafone spokesperson Matt Morgan commented that “[w]e have previously stated that we have started preparations for a potential IPO, which includes private conversations with banks, but this is a lengthy process and no decision will be made until we are at the end of it.”

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  • Bison Consolidated debuts with small discount, but picks up momentum

    Bison Consolidated debuts with small discount, but picks up momentum

    Save for the first initial public offering (IPO) this year on the Malaysian market, corporate debuts on Bursa Malaysia has seen dampened openings thus far. Convenience retail chain store operator Bison Consolidated Bhd listed on the Main Market of Bursa Malaysia on Tuesday, opening at MYR1.09 on a volume of 2.2 million shares, a small discount to its IPO price of MYR1.10. This was despite encouraging reception prior, where the 15.5 million new public shares offered had been 6.94 times oversubscribed. The counter closed its first trading day positively, however, at MYR1.17, marking a 6.36 per cent premium to the opening price. 68,480,900 shares traded hands.

    Bison is the third Malaysian IPO in 2016, and the last for this first quarter period. The first two had been building materials supplier Chin Hin Group Bhd earlier this month, and Ranhill Holdings Bhd mid-March. Bison is an investment holding company, and through its subsidiaries, it is involved in the business of press and convenience retailing under its main trade name of “myNEWS.com”.

    It also operates eight outlets of WHSmith, under its equal joint venture with UK retailer WHSmith Travel. Managing director Dang Tai Luk told reporters after the listing ceremony that the group intends to open another 115 stores with the IPO proceeds over the next 36 months. It has already opened 20 stores, with another 50 targeted to be opened within 2016. “Our target for 2016 is achievable; we have already identified 30 locations, and are considering another 30 locations. From those numbers, I would say we are targeting to open 70 stores a year,” he said, adding that a key criteria is the population density in the selected locations. Bison seeks to build its network of stores in high-street locations, departing from its old strategy of setting up in commercial buildings and various types of shopping malls.

    Its IPO prospectus noted that the group has 255 outlets, as at February 10, which carry a range of print media, convenience retail products and offer consumer services like electronic payment services and money remittance services. According to Smith Zander International Sdn Bhd, Bison owns an estimated market share of 8.6 per cent in outlet numbers, and 6.6 per cent in terms of revenue for the year 2015. The company is also looking to establish another distribution centre either in the north or south of Peninsular Malaysia, looking at either Penang or Johor states.

    It currently has one 125,000-sq ft warehouse facility in central Peninsular, and Dang noted that the new warehouse will not be bigger than the existing one. “We have always managed our own distribution, and we want to improve and make it more efficient,” he said.

    The management has no plans to expand beyond Malaysia at the moment, as it believes there are more opportunities to tap onto in the domestic market. Bison raised MYR88.68 million ($22.19 million) from the IPO, of which MYR35.55 million or 40.1 per cent will be utilised for the purpose of outlet expansion and enhancing the group’s existing outlets; and MYR14.45 million or 16.3 per cent will be used to improve its nationwide logistics and IT capabilities to support its growing network and product base, the establishment of an additional distribution centre, food preparation and packaging facility and acquiring additional transport equipment. Another MYR32.23 million or 36.3 per cent will be utilised to finance inventory stocking for new and existing outlets as well as other working capital requirements. The proceeds will be utilised for these purposes over the next 36 months. The remaining portion will fund listing expenses.

    CIMB Investment Bank was the principal adviser, managing underwriter and sole bookrunner for the IPO.

  • Joyo Financial to Provide Retail Investors’ Access to IPO

    Joyo Financial to Provide Retail Investors’ Access to IPO

    The tech sector is always a main focal point for investors and consumers’ alike as it lays down the bench mark for what will be common place for most people whether it is in the home, places of business, or recreationally.

    In the bustling IPO market which covers a variety of numerous product sectors by some of the marketplaces more recognizable and also some not so well known companies, whose products are among the best innovative and pioneering ideas to date. These companies offer many different options to potential investors and have the retail, corporate and institutional clients as well as the management at Joyo Financial Ltd., drooling at the prospects.

    Joyo Financial Ltd., a Japanese brokerage company with an office in Hong Kong, has made all the right noises in relation to at least 2 impending IPO’s that they will be involved with this year.

    Charles Leung, Chief Investment Officer at Joyo Financial Ltd, attending the 23rd annual SXSW Interactive festival in Austin, Texas, USA had the following to say, “I love coming to these expos, the companies demonstrating their latest products and achievements are always insightful and never fail to provoke thought on what can and what almost definitely will be a standard in our ever evolving world.” The SXSW festival is an annual set of film, interactive media, and music festivals and conferences that take place in mid-March.

    When asked about Joyo Financials plans in the Tech sector this year he remarked, “I really would like to reveal more on 2 IPO projects in particular we’re involved with this year. I can say this, that one is in the tech sector and will be huge and the other is in the more conventional mining sector and will just as big, full details will be disclosed shortly.”

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  • SGX proposes 10% minimum retail tranche for mainboard IPOs

    SGX proposes 10% minimum retail tranche for mainboard IPOs

    The Singapore Exchange is proposing that mainboard companies allocate to retail investors a minimum 10 per cent of shares in their initial public offers (IPOs), up to a maximum of $100 million.

    Between 2010 and last year, market debutantes on average set aside only 8 per cent of their IPO shares for retail investors, the SGX said.

    But over the same period, 90 per cent of IPOs received applications for their public subscription tranches amounting to greater than 10 per cent of the total offer size.

    “SGX’s proposal for a minimum 10 per cent retail allocation for shares of mainboard IPOs is aimed at giving individuals more investing opportunities in the Singapore equities market,” said chief executive Loh Boon Chye.

    “While market conditions may have been uncertain of late, this initiative is for the long term and is part of overall enhancements to the Singapore stock market.”

    This is the second time that the bourse operator has suggested introducing a minimum IPO allocation for retail investors. The first time it did so was in in 2012, when it proposed a 5 per cent retail allocation.

    Yesterday’s proposal is a recalibrated one that takes into account the feedback the SGX received from the 2012 consultation and data from IPOs launched between 2010 and 2015, it said.

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  • Goodbaby China aims to deliver $161m HK IPO

    Goodbaby China aims to deliver $161m HK IPO

    Goodbaby China broke the equity capital markets silence on Tuesday by launching Hong Kong’s first initial public offering in almost two weeks.

    Braving choppy market conditions, the Chinese maternity, baby, and children’s products seller hopes to raise as much as HK$1.25 billion ($161 million) by wooing investors with a positive tale of growth.

    With global stock markets faring poorly as fears of an economic slowdown gather steam amid a slump in oil prices, conditions are hardly favourable for primary share sales, not least in Hong Kong and mainland China. The Hang Seng index fell another 2.5% on Tuesday, extending its losses so far in 2016 to almost 14% as shares in Shanghai and Shenzhen tumbled another 6.5% to 7%.

    But bankers familiar with the transaction hope the underlying quality of Goodbaby China plus an appealing valuation will help to counter sluggish market sentiment and support the IPO.

    Goodbaby China is scheduled to take orders until February 2 and aims to list on February 12, the second day after the Chinese New Year break. It is the first IPO in Hong Kong for which marketing has begun within the 2016 calendar year and would be the first since Virscend Education listed on January 13.

    Indicative deal terms include the sale of 333.3 million shares at a price range of HK$2.68 to HK$3.76 per share. The company is selling 25% of its enlarged share capital through the IPO with an option to increase the deal size by 15% depending on subscription levels.

    Based on these terms Goodbaby China could raise between $115 million to $161 million on a pre-shoe basis and up to $185 million if the upsize option is fully exercised.

    By Hong Kong standards that is not a large trade; the territory was the world’s largest IPO fundraising hub last year, raising a total of $33.7 billion. So Goodbaby China’s offering is less likely to be undermined by broader market sentiment, assuming the company and its representatives can pitch a good equity story during the bookbuilding process.

    Initial readings are encouraging. Goodbaby China, which is China’s largest multi-channel retailer of children’s products, according to its prospectus, ticks some of the hottest investment boxes in China as it stands to benefit from China’s new two-child policy, increased consumption, and the boom in e-commerce.

    Goodbaby China sells maternity, baby, and children’s products both under its own brands and third-party brands. It operates in the downstream of the value chain and is independent to Goodbaby International, the Hong Kong-listed manufacturer of children’s products.

    The company was formed through a spinoff from Goodbaby International in 2010.

    Moving online

    Like other consumer retailers, Goodbaby China is in the midst of transforming into an online and offline retailer through the introduction of internet and mobile sales platforms.

    It appears to have executed the transformation well with a significant portion of its growing sales shifting to online platforms.

    According to the company’s prospectus, online sales as a percentage of revenue grew from 5.2% in 2012 to 22.4% in the first 10 months of last year. During this same period, Goodbaby China’s revenue and net profit grew at a compound annual growth rate of 11.75% and 14.5%, respectively.

    One of the company’s strengths is the extensive strategic partnerships it has entered into with international brands like Nike, Adidas, Reebok, and Puma. Sales of third-party brand products have become a key sales component for the company, accounting for around 35% to 40% of its total revenue in the last four years.

    Goodbaby China’s multi-channel retail sales model and its focus on children’s products make it difficult to benchmark against individual listed companies. So for comparison purposes, syndicate analysts are using a basket that comprises Chinese offline retailers Anta Sports and Cosmo Lady and online retailer Jumei International.

    One source familiar with the matter told FinanceAsia that the indicative price range for Goodbaby China’s IPO equates to about 9.5 times to 13.3 times estimated 2016 earnings, based on the syndicate consensus. That is a significant discount to the trio of reference companies, which are much bigger in terms of their market capitalisation but trade at around 18 times forecast 2016 earnings.

    The company intends to continue expanding both online and offline sales model, with the proceeds of the IPO allocated fairly evenly between the two.

    Approximately 30% of the proceeds will be deployed for expanding self-operated stores, while another 25% will be used for potential acquisitions of new businesses and technologies. The company also plans to use 22% of the proceeds to improve its supply chain management and IT infrastructure, according to its prospectus.

    Morgan Stanley is the sole sponsor of the IPO and also a joint bookrunner with BOC International.

     

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  • European Stocks Fall on North Korea Bomb Test

    European Stocks Fall on North Korea Bomb Test

    European shares fell on Wednesday as a self-professed bout of nuclear testing by North Korea and a falling renminbi rattled investors.

    By late morning in London, the FTSE 100 was down 1.33% at 6,055.53. Mining stocks, as leaders BHP Billiton (BHP) and Rio Tinto (RIO) led the benchmark lower.

    In Frankfurt, the DAX was down 1.31% at 10,175.31 and in Paris the CAC 40 was down 1.36% at 4,475.91. Volkswagen (VLKAY)  extended Tuesday’s losses in Frankfurt amid fears of hefty legal costs in the U.S. over emissions-tests rigging.

    After the Chinese central bank set the renminbi reference point at a weaker-than-expected level, the currency fell to a five-year low against the dollar. Meanwhile, North Korea claimed to have tested an underground hydrogen bomb, although some international observers were skeptical.

    Final eurozone purchasing managers’ data from Markit Economics came in better than expected in December, with the composite index, which melds the service sector with factory output, unexpectedly rising to 54.3, taking it further above the 50 threshold which separates economic expansion from contraction. Initial December data had pointed to a reading of 54.0. However, weak European Union producer price data for November later took the sheen off those Markit figures.

    Construction and engineering company Costain was up almost 2% in London after it reported record orders worth £3.9 billion ($5.7 billion) in 2015, including £2.8 billion-worth of revenue that Costain will accrue in 2017 and beyond. It will release its full 2015 results on March 2.

    Retailer Topps Tiles was up about 1.3% after reporting same-store sales growth of 4.4% in its first quarter.

    Another retailer, Card Factory, was up 1.8% as it announced that Christmas trading had met its expectations. It said CEO Richard Hayes would retire and be replaced by Karen Hubbard, the chief operating officer of discounter B&M European Value Retail.

    Insurer NN (NNGPF) was up almost 3% at €32.10 in Amsterdam after ING cut its stake to 16.2% from 25.8%. ING sold the shares at €31 in an accelerated book build, raising €1 billion ($1.1 billion). NN itself bought 8 million of the 33 million shares on offer.

    Many Asian indices fell as the renminbi and emerging-market currencies retreated.

    In Seoul, stocks were mixed, with the main index closing up 0.47% at 687.27 after the North Korea H-bomb claim. But Chinese stocks recovered after a state media outlet reported that Chinese securities regulators would extend a six-month ban on share selling by major investors until permanent rules were put in place. The ban would otherwise have expired on Friday. The Shanghai Composite closed up 2.25% at 3,361.84 and the Shenzhen Component index gained 2.24% to close at 11,724.88.

    In Hong Kong, the Hang Seng closed down 0.98% at 20,980.81.

    Shares of New World China Land closed up almost 21% in Hong Kong at HK$7.49 per share after majority shareholder New World Development offered HK$7.80 per share to take the company private after a previous attempt failed to garner sufficient shareholder approval in June 2014. The new offer values the stock at HK$67.8 billion ($8.7 billion).

    In Tokyo, the Nikkei 225 closed down 0.99% at 18,191.32 and the Topix fell 1.05% to close at 1,488.84.

    In Sydney, the S&P/ASX 200 closed down 1.18% at 5,123.13.