Global Marketplace Activity: China IPOs, Israel M&A, Bank Bond Update

by: Global Investing Editor

Two more Chinese companies are doing IPOs in the USA according to Hoover's:

China Dredging Group Ltd., Based in Fuzhou City, China

Primary Industry:

Specialty Contracting

2009 Sales:

$80.3 mil

2009 Employees:


Proposed Ticker: China Dredging Group Co., Ltd. (filed 30-Dec-10)

Offering Amount:
$50.0 mil

Lead Underwriter:

Chardan Capital Markets, LLC, Inc.
Click to enlarge

China Sunflower Group Limited (filed 29-Dec-10)
Based in Wuwei City, China

Primary Industry:
Grains & Oilseeds Production
2009 Sales:
$16.8 mil

2009 Employees:

Proposed Ticker:
Offering Amount:
$20.0 mil

Lead Underwriter:

Rodman & Renshaw, LLC
Click to enlarge

*According to an interview with Bloomberg published yesterday, Mellanox Technologies Ltd. (NASDAQ:MLNX) CEO Eyal Waldman is betting the purchase of Voltaire Ltd (VOLT) may help the Israeli maker of data-center adapters and software to boost sales 10-fold within the “coming years.” “If we can run faster than our competitors, we can take a larger share of the market,” Waldman said in a Jan. 3 interview at his Tel Aviv office. “It’s not an illusion.”

MLNX, 10.2% owned by Oracle (NASDAQ:ORCL) (since Oct.), gains from increased spending on services like cloud computing, which allows access to information over the Web from external data centers. Spending on cloud services will grow almost threefold to $44.2 bn by 2013, as it’s a cheaper method of managing and using information technology, according to researcher IDC. For MLNX, “reaching $1.5 bn is a promising but challenging goal,” said Jie Wu, an analyst at researcher IDC. “It may take a while to get there.” Mellanox ADRs have more than tripled in the past two years vs a 65% gain for the Nasdaq Composite Index. The stock rose as much as 3.3% to 96.40 shekels in Tel Aviv today.

*Compugen (NASDAQ:CGEN) signed an agreement with Baize Investments, a private corporation investing in medical technologies, and will receive $5mn in R&D funding for its new pipeline program. Baize Investments obtained a financial interest in five designated Compugen-discovered molecules and has been issued a warrant to purchase 500,000 Compugen shares at an exercise price of $6/sh before end-June 2013. Baize's financial interest in the 5 molecules gives it the right to receive from Compugen up to 10% of certain future payments CGEN receives from third parties from successful licensing out their development and/or commercialization. The 5 unnamed CGEN molecules are in active research in the CGEN Pipeline Program, their current status from in silico selection to post-animal model validation.

CGEN CEO Martin Gerstel said:

This arrangement is an excellent example of how we can financially leverage our unique predictive product candidate discovery infrastructure to provide an increasing number of novel and attractive product candidates for potential licensing. Given the continuous expansion and improvement of this infrastructure, the in silico prediction and selection of candidates is from a practical standpoint, essentially without limit as to the number of attractive candidates that can feed our Pipeline Program, and on an extremely cost-effective and systematic basis. Recently we announced the addition of twenty such novel molecules to the Program, and more have been added since that announcement. The funds received by Compugen pursuant to the agreement being announced will allow us to pursue more aggressively our ambitious objectives for the Pipeline Program during the next few years.

*Daewoo International Corp. the South Korean trading firm, signed a $30 mn deal to supply 255 buses powered by compressed natural gas, spare parts, and 50,000 tonnes of wheat too Bangladesh Road Transport Corporation by summer. The deal was partly financed by South Korea's Economic Development Cooperation Fund. Daewoo is a unit of steelmaker Posco (NYSE:PKX).

*It's New Year's in the bond market as borrowers gear up to get funding. Banco Santander (STD) will pay a high 2.25% over swap rates for its new 5-yr covered euro-denominated bond. We don't know the amount being raised. Borrowers are nailing down fixed loans for fear rates will rise, and shunning floating rate issues. STD, Barclays (NYSE:BCS), Deutsche Bank (NYSE:DB), and Cemex (NYSE:CX) are all reportedly tapping the markets, copying Berkshire Hathaway (NYSE:BRK.A) which did this yesterday. And a sovereign, Portugal, is also said to be raising cash.

*Bombardier Aerospace (PINK:BDRXF) received a firm order from SkyWest, of Utah. for four CRJ700 NextGen airliners. They will be flown by SkyWest (NASDAQ:SKYW) under the Delta Connection banner in a dual-class configuration with 65 seats. The contract is worth about $148 mn.