Airbag maker seeks GEM boost
Jinheng Automotive Safety Technology, an airbag manufacturer, will begin its public share offering today to raise $81.7 million on the Growth Enterprise Market.
The Liaoning-based company, which focuses on the mainland market, is looking to upgrade its brand name by listing in Hong Kong as part of its efforts to open export markets overseas.
'[Being a] listed company means higher standards [in management and corporate governance]. We'd like to achieve these standards as we are looking to go international,' chairman Li Feng told reporters yesterday.
'Although $80 million is not a lot of money, the listing provides a fund-raising channel.'
Jinheng will offer 95.97 million shares at $1.18 each. Of the total, 9.59 million shares will be offered to the public and the rest will be placed with institutional investors.
The company reported a net profit of $23.26 million for the first five months of this year, compared with earnings of $5.29 million during the same period last year.
Turnover grew 41 per cent to $85 million and its gross profit margin increased to 37.3 per cent from 17.1 per cent in the first five months of last year.
Jinheng has more than 20 clients on the mainland, including FAW, Hafei Motor, Jinbei Automotive and Chenghe Automobile.
The public offering will remain open until Friday.
Allotment results will be announced next Tuesday and trading will start two days later.
