PACIFIC Plywood Holdings, a plywood and veneer maker and exporter, will be the first company of its kind on the stock exchange when it makes its debut on November 20.
Chairman Budiono Widodo said the company, whose principal operations were in Malaysia, decided to list in Hong Kong rather than Kuala Lumpur to reflect its desire to expand in China.
It had signed a deal with an 'independent state-owned entity', China Complete Set Equipment Import and Export Dalian Co, to set up a factory in the northeastern city of Dalian, he said.
Of the HK$235 million to be raised by its new issue and placing, HK$95 million would be spent to build the Dalian factory and buy machinery to manufacture value-added plywood products.
A further HK$134 million would fund expanded production in Sarawak and Singapore.
Mr Widodo said the company would commit US$20 million in cash and machinery to the mainland venture in the second half of next year.
