For clients who are seeking an exit from concentrated positions that they own, Yukai Capital Group will facilitate a purchase of blocks of shares at a pre-negotiated discount to current market prices.
Our Private Block Trade program allows these clients a number of benefits including the ability to quickly exit a position(s) and eliminating the risks of having to liquidate the position over time to avoid causing any disruptions in its price or volume.
It is important to note that Yukai Capital Group is not a long term investor and that any Blocks of shares purchased will be subject to either being liquidated to the market or sold to other investors shortly after being purchased.
For this reason we will pass on any offers if a seller is seeking a long term investor to hold the shares or wishes to places any restrictions on the resale of the shares.
Additionally, our interest in purchasing Blocks of shares is based on a number of criteria or parameters used to determine the level of risk we are willing to assume which include:
- Overall size of the position in relation to the daily trading volume
- Overall size of the position in relation to the Outstanding Shares in the company
- Share price, trading volume and market capitalization
- Analysis of the current and recent trading history of the shares (to determine if any manipulation is occurring)
- Desired discount being sought by the seller
- Who the seller is in relation to the Listed Co. (Major Shareholder, CEO, Managing Director etc.)
- Any shopping or marketing of the stock to other potential buyers over the past 30 to 180 days
- A number of other factors including possible exchange or regulatory actions against the shares in the near future
Due to market conditions and regulatory changes, starting in 2018 we are limiting interest in Block Trades to the following markets:
- Hong Kong (Mainboard listings only, NO GEM Boards)
For this last category, we suggest the shareholders consider using one of our structured finance products such as a Repo or Stock Loan as a means of exiting the position they wish to sell.