2014-07-25

Another Boss Hits the Road, Only This Time It's A Listed Company

The boss of Fujian Nuoqi (1353.HK) and his wife have run off with the company's funds, leaving behind at least ¥1.5 billion in debt. The firm IPO'd earlier this year. Clearly Mr. Ding took the term "cash out" to a whole new level.

Menswear maker hit by speculation
Fujian Nuoqi (1353) chairman and chief executive Ding Hui and his wife Chen Ruiying have absconded with funds, leaving the menswear maker owing huge debts, Sina Finance reported.
The mainland media outlet quoted a Sina Weibo posting by Linda Chen Liling, general manager of a shoe material company in Quanzhou, Fujian, for its report. Chen deleted the Weibo posting later, but insisted she was not slandering the couple.

Trading on the stock, which plunged more than 50 percent this week, was suspended on Wednesday. Sources said its major shareholders were offloading the shares after the expiry of a six- month lock-up period following its IPO - the year's first in SAR.

The stock closed at HK$1 before the trading halt, down 53.05 percent from its listing price of HK$2.13.

As noted, the stock IPO'd earlier this year, in January. Here's the chart.

Chinese coverage puts the debt at more than¥1.5 billion. A banker with Everbright says many of the firm's prjects were rejected by Everbright and other banks. Nuoqi spent a lot of money to go public and already had high debt levels, there is also mentioned of high interest loans needing to be repaid. 媒体称官方证实诺奇老板跑路 涉15亿贷款.

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