Nirvana Asia, the largest funeral services firm in the region, says shares in its Hong Kong initial public offering have been more than 50 times over-subscribed.
The Malaysia-based company said the shares were “very significantly over-subscribed” – at 51.7 times the number of shares available for subscription.
The offer price has been fixed at HK$3.00 a share, at the bottom of its indicative range. Net proceeds are estimated to be HK$1.9 billion.
Nirvana is set to become the first foreign company, other than firms from the Greater China region, to list in Hong Kong since December last year.
The company said 40 per cent of the proceeds, or HK$763 million, would be used to establish new cemeteries, columbarium facilities and funeral homes in new markets through greenfield projects.
Twenty-five per cent of the proceeds, or HK$477 million, would be used for increasing the capacity of the company’s existing cemeteries and other facilities through land acquisitions and new construction.