Ming Fai targets HK$700m IPO
Ming Fai International Holdings, a Hong Kong-based maker of toiletries such as shampoo and soap for travel kits, is seeking up to HK$700 million from its initial public offering this month, according to sources.
The company may value its shares at 12 to 15 times this year's forecast earnings, market sources said. It started meeting with investors on Monday will set the indicative price range on Friday.
Trading is scheduled on November 2. DBS Capital is the sole bookrunner of the deal.
The proceeds will mainly help the firm expand in the mainland's budget hotel sector to capitalise on the country's booming tourism and the Beijing Olympics in 2008,' said a source close to the transaction.
Beijing authorities expect that about 500,000 to 550,000 tourists will visit the city for the Olympics in August next year, the majority of whom will come from overseas. That would be about 60 per cent more than the number of foreign visitors in the same month last year.
According to the 2005 Beijing Olympic Economic Report, the total number of inbound tourists is expected to climb 10 per cent to 4.3 million in 2008 from 3.9 million this year.
About 10 per cent of Ming Fai's income over the past few years came from the mainland while its biggest markets are the United States and Europe.
Established in 1980, Ming Fai supplies products such as bathroom accessories and personal care bags to hotel and airline operators. It runs a plant in Shenzhen with more than 4,000 workers.
Its clients include Shangri-La, Sheraton, Marriott, Diaoyutai State Guesthouse, Cathay Pacific, Dragonair and Lufthansa.
