ZHE - Zheng He Global Capital

[System]

Zheng He (through its wholly-owned subsidiary in China, Fujian Zhong Hong) Hong holds a 40 year business licence to operate a Credit Guarantee Company in the Fujian Province in the People's Republic of China.

http://www.zhenghe.com.au

 

[Miner]

I got a folder sent to my registered address and had some interesting reading material.

ZHE is very closely held by the Chairman and reducing his stake from 51.13% to 50.47%
After issue the public will hold only 5.12 % shareholding .

It reminds another company caled Rockland Ritchie RCI chaired by Mr Pun Yan Wu .

Why I drew a corollary because in RCI the Chairman controls a very large amount. He keeps on buying the shares at every price.

(Tragedy : I bought the share at a different price from 40 cents to 29 cents ) RCI CEO is very nice person as he always returns phone calls. But end of the day has no say probably in the company and driven by largest shareholder. RCI rejected three good take over offers and there is no reasonable development from this company

I am afraid to see three common factors between two companies.

1. Zheng will be driven at the wishes of its largest shareholder RCI .
2. The Managing Director of ZHE hardly holds any stake on the company just like RCI
3. The MD of ZHE is also a Director in RCI (he could not do there any thing for the general share holders at RCI and I do not expect him in doing any thing for them at ZHE)

If it was a good script then why Intesuisse ( a smart broking house IMO) will promote the IPO to normal people instead of asking to their favoured sophisticated investors for such a small quota ? Some thoughts

The ZHE Company is currently operating under the address of a corporate consulting company in Victoria - so yet to have its own office notwithstanding there is only 5.12% being offered to public. You may ask how they have been operating as a global capital ltd - from the study room of a wealthy business man with few computers. May be - who knows. I appears to be cynical.

Should I invest on this IPO -