TOP Financial Group has filed a new shelf registration covering up to US$1.47 billion of Class A ordinary shares, totaling 98,179,613 securities, giving the brokerage greater flexibility for future capital raising and potential equity issuance. The filing comes after a sharp rebound in the shares, which closed at US$15.50, with a 90 day share price return of 49.04% and a year to date share price return of 206.93%, though the 3 year total shareholder return is down 34.87%. The stock trades on a price-to-book ratio of 52.2x, far above the average P/B of 3x for peers in the US Capital Markets industry and around 1.3x for the broader industry, against a business reporting only $4.5m of revenue and a net loss of $1.4m. The central question, according to the analysis, is whether the current price still compensates investors for the dilution risk from the fresh shelf, or whether the small, loss-making Hong Kong brokerage can scale its US$4.5m revenue base.
Zhong Yang Financial Group Limited Ordinary SharesTOP Financial Group (Zhong Yang Financial Group) filed a $1.47B shelf registration, raising dilution risk for the small, loss-making brokerage.
CTBC Financial Holding Co Ltd
