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Monday, May 23, 2011

The Birth of a COGO RTO

Here are the original shareholders of Comtech LTD (pre-RTO) and their final share count after the RTO was completed.































ShareholderShares of Original Comtech Group (Cayman islands)Percentage of SharesAmount of Shares of COGO owned after RTO*Percentage of COG shares owned after RTO
Comtech Global Investment Ltd.6,500,00065%13,163,19959.26%
Purple Mountain Holding Ltd.800,0008%1,620,0867.29%
Ren Investment International Ltd.2,700,00027%5,467,79024.62

Information from a 2004 SEC filing on page 64
* Note I have adjusted the post-RTO shares of COGO for the 2-1 reverse split that occurred so COGO could list on the Nasdaq.
 
Why would shareholders wish to dilute themselves so much to go public? Maybe it was worth it but this seems like a heavy price to pay.  Some notes about the shareholders.

Comtech Global Investment Ltd.This is an investment vehicle owned by Jingwei (Jeffrey) Kang the CEO of COGO.

Purple Mountain Holding Ltd.  Investment vehicle owned by Yue (Justin Tang), who was the founder of eLong

Ren Investment International Ltd. This is an investment vehicle originally controlled by the CEO, Jingwei (Jeffrey) Kang.  Yet during sometime in 2007 (haven't found the exact date  yet) Ren Investment International went from being directed by the CEO to the CEO's brother Kang Yi.  You'll also notice from the EDGAR filing that Ren Investment has been a seller of COGO

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