Mobile handset speaker maker AAC Acoustic Technologies plans to tap the market for up to $879.8 million soon, with the retail tranche of its initial public offering launching on July 28, sources close to the deal said yesterday.
AAC aims to sell 312 million shares at between $2.38 and $2.82 each, representing a price-earnings ratio of 12.5 to 14.8 times this year's earnings, and 9.7 to 11.5 times forecast earnings for next year, the sources said.
Ten per cent of the offer shares will be reserved for retail investors.
Sole book runner CSFB declined to comment.
Rival Foxconn International Holdings trades at 21.62 times current-year earnings, and at 19.02 times forecast earnings.
'Investor response has been very positive in pre-marketing, as AAC's business is of great potential on rising demand for handset speakers,' said the source. AAC started marketing the offering yesterday, said the source, who added that pricing of the shares was scheduled for August 2, before a listing on August 9.