Firm times share offer to benefit
COMPANION Building Materials is taking advantage of the recent buying spree on new listings to launch its $69 million public share offer today.
The offer comprises 51.75 million new shares and 17.25 million existing ones at $1 each, representing 30 per cent of the enlarged share capital.
With a price-earnings multiple of 6.9, the offer includes one free warrant for every five shares.
Chairman Doreen Leung Siu York-chee said Companion was well-positioned to benefit from the growing construction and refurbishment activities in Hong Kong and southern China.
She said its joint-venture plant in Wenzhou had been in operation since July, with orders worth about $17 million already on hand.
The long-term outlook for the China market was good, she said, and the company might open retail outlets on the mainland to distribute ceramic tiles.
Besides ceramic tiles, Companion also imports and sells marble and granite products, and provides related installation services.
The group is forecasting a profit before extraordinary items of at least $16.5 million for the six months to September 30.
Net proceeds from the offer, which closes next Tuesday, are estimated to be $46.9 million.
