Yangzijiang Financial to be added to STI, FTSE indexes

Singapore one-dollar bill, showing Chinese junk boatsSingapore one-dollar bill, showing Chinese junk boats

Yangzijiang Financial Holding (YZJFH) will be added to the Straits Times Index and several FTSE indexes after it is spun off from Yangzijiang Shipbuilding (Holdings), the Chinese shipbuilder said in a filing to SGX Wednesday. 

YZJFH, which is expected to begin trade on 28 April, will be added to the FTSE ST Mid Cap Index, FTSE ST China Index and FTSE ST All-Share Index, the filing said. 

Shares of YZJFH will be distributed as a dividend in specie to existing shareholders of Yangzjijaing Shipbuilding on a 1:1 basis. Yangzijiang Shipbuilding’s shares will trade ex-entitlement on 22 April, the filing said.

Once YZJFH is listed on the exchange, Yangzijiang Shipbuilding will remain in the STI with the same investable weight, and YZJFH will be added to the index with the same investable weight as Yangzijiang Shipbuilding, the filing said. The smallest constituent of the index will be removed, effective 5 May, the filing said.

Every YZJFH share is estimated to be valued at around S$1.08, based on the current Singapore dollar to Chinese yuan exchange rate, Yangzijiang Shipbuilding said last week. 

Yangzijiang Shipbuilding has previously said it expected the spin-off company to have a market capitalization of S$4.26 billion after listing.

Upon listing, YZJFH will shift its debt investment business to focus on fund investments for longer investment horizons, such as private debt and mezzanine funds under the investment management business in China, the company has previously said.

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