Dickson Concepts, First Tractor seek HK$748m
Dickson Concepts (International), the Hong Kong upmarket retailer, and First Tractor, the mainland farm machine maker, seek to raise as much as HK$748 million combined from two separate share placements, according to sources.
Hong Kong-listed firms have been tempted by the surging market to raise funds through share placements, as the benchmark Hang Seng Index hit a fresh record yesterday for the second straight day this week.
'There is no urgent need for cash for the two companies, but the strong stock market momentum is the incentive,' one banker said.
It is the first share placement for both firms in more than a decade.
Dickson Concepts will offer 62 million new shares at HK$7.37 to HK$7.80 each to raise up to HK$484 million, according to a sale document obtained by fund managers.
The range represents a discount of up to 9 per cent to the stock's last closing price of HK$8.10.
Morgan Stanley is the sole bookrunner of the share sale.
Dickson Poon, chairman of Dickson Concepts, has participated in a spate of recent initial public offerings, spending more than US$100 million acquiring shares of InTime Department Store, Stella International, Bosideng International Holdings and Fosun International this year.
First Tractor and an existing shareholder hired UBS as sole bookrunner to help sell HK$264 million worth of shares at between HK$3.78 and HK$3.95 each, according to an email sent to investors.
The offer price is at a discount of 4 per cent to 8 per cent to the stock's closing price of HK$4.11 yesterday.
Meanwhile, SmartTown Holdings planned to place Dore Holdings shares that equal an 18 per cent stake for as much as HK$652 million, market sources said.
SmartTown, which owns 28.97 per cent of Dore, has offered 150 million Dore shares at between HK$3 and HK$3.15 apiece to raise up to HK$472 million, sources said.
CLSA, the placing agent, may sell an additional 56.88 million shares owned by SmartTown for up to HK$179 million if demand warrants.
Ripe for fund-raising
The placements are the first for both companies in more than a decade
Upmarket retailer Dickson Concepts plans to raise up to, in HK$: $484m
Mainland farm machine maker First Tractor plans to raise up to, in HK$: $264m