Aqua Resources To List On London Stock Exchange Research Project Paper

Aqua Resources To List On London Stock Exchange Project - Research Paper Example In a quest to diversify its portfolio, Aqua resources limited made several investments in subsidiaries such as Aqua Resources (In-Pipe) Holdings Limited, Aqua Resources Asia Holdings Limited, an exempt company incorporated in the Cayman Islands formed in October 2008 and Cooperative Aqua Netherlands Holdings UA, a Dutch co-operative company formed on 22 March 2010. In the company’s short life at the London Stock Exchange, the most significant decision was the tender offer toJPMorgan Private Equity Limited where the company sold out its ordinary shares to 29.9%. This resulted in less than 25% of ordinary shareholding in the public which formed a clear basis for its delisting from the stock exchange market. Table of Contents ABSTRACT 1 List of Tables 3 CHAPTER 1: INTRODUCTION 4 1.1Background of the Study 4 1.2 Justification 5 1.3 Objectives 5 Specific objectives 5 1.4 Hypothesis 5 CHAPTER 2: LITERATURE REVIEW 6 2.1 Process of application for listing on LSE 7 2.2 Aqua Resources P erfomance 8 2.3 Risks relating to investments in water 9 2.3.1 Challenging six months and possible merger with other funds   12 2.3.2 Collapse in share price of China Hydroelectric Corporation 13 3.0 METHODOLOGY 17 In this event study we shall use the Capital Asset Pricing Method to calculate the abnormal returns of the investments made by Aqua Resources Fund for the period between 2008-2012. Basically the abnormal return refers to the excess returns on the expected returns realized from an investment. Theassumptions underlying the CAPM are: 17 3.2 Summary of significant accounting policies 21 iv.1RESULTS AND DISCUSSION 22 4.1 Procedure for calculation of Abnormal Return 22 Step 1 22 Step 2 22 Step 3 22 Step 4 22 24 5.0 LIMITATIONS AND FURTHER RESEARCH 24 6.0 CONCLUSION 25 Bibliography 26 List of Tables Figure 1Analysis of movements in NAV for the year ended 31 December 2011 (in â‚ ¬) 20 Figure 2: The Company ended the year with liquid funds of approximately â‚ ¬4 million, r epresenting approximately 6.9% of its net assets. 20 Figure 3: Share price performance of the company 23 Figure 4: Assets at unaudited fair value at period end 23 CHAPTER 1: INTRODUCTION 1.1 Background of the Study Aqua Resources Fund Limited was incorporated on 12 June 2008 as a closed-ended investment fund in the water resources sector with limited liability under The Companies (Guernsey) Law, 1994 as amended. The Company was established pursuant to the framework introduced by the Guidance Document issued by the Guernsey Financial Services Commission. The company’s investment manager is FourWinds Capital Management which has the responsibility for the discretionary management of its assets with a proven track record of generating returns and managing risk across natural resources investments including water-related assets The company had a subsidiary called Ranhill Water Technologies (Cayman) Limited. RWT was a fully integrated water and waste water company with in-house ex pertise in design, construction and operations of water and wastewater plants across a number of Asian countries. Other subsidiaries of the company include: Aqua Resources (In-Pipe) Holdings Limited (â€Å"ARIHL†), a Guernsey limited company formed in August 2009; Aqua Resources Asia Holdings Limited, an exempt company incorporated in the Cayman Islands formed in October 2008; and Cooperative Aqua Netherlands Holdings UA, a Dutch co-operative company formed on 22 March 2010. 1.2 Justification This study focusses