Paper products maker signs up three prominent businessmen as substantial shareholders in flotation
Listing candidate Nine Dragons Paper (Holdings) has introduced Cheng Yu-tung, Robert Kuok and Lee Shau-kee as its substantial shareholders to back Hong Kong's largest initial public offering so far this year.
According to the company's preliminary offering circular, the three tycoons have agreed to buy US$20 million worth of its shares through their subsidiaries - Ample Glory, a member of Mr Kuok's group; Chow Tai Fook Nominee, a company wholly owned by Mr Cheng and his family; and Bestfull, a private company of which Mr Lee is an indirect substantial shareholder.
The mainland's largest containerboard products maker aimed to float its shares early next month, sources said.
The company plans to raise up to $3.4 billion by selling one billion shares at an indicative price range of $2.85 to $3.40 each, translating into 11 to 13 times its combined profit attributable to equity holders for the financial year to June, projected to be less than 1.05 billion yuan.
The circular said Nine Dragons earned 242.1 million yuan for the three months to September last year, up from 52.8 million yuan the year before.
For the past financial year, its net profit increased 7.92 per cent from the previous year to 303.7 million yuan.