BSC in formal application for stock exchange listing

BUILDING materials supplier BSC Group is moving closer to a flotation, having made a formal application to the stock exchange.

The company, which has for some time sought a listing, hopes to use some of the funds from its new issue to enter the fast-growing building industry in China.

BSC executive director Jenny Lau said that with heavy investment by Hongkong developers in retail and residential developments, the mainland industry was set to take off in the near future.

BSC's turnover is expected to reach $570 million in the year to March 31, compared with $510 million and $460 million in the previous two years.

Mrs Lau said the company planned to set up representative offices in Beijing, Dalian, Guangzhou and the Pearl River delta centre of Panyu.

An interior decoration contract worth more than $10 million had been secured for the entertainment facilities at the Gingguang Centre in Beijing, she added.

Mrs Lau said a joint-venture business with Shinwa Kogyo of Japan would also be listed, but the Japanese partner was unlikely to take up additional shares from the new issue.

The joint venture, which contributes about 10 per cent to 15 per cent of BSC's total turnover, is a supplier of up-market stainless steel products.

Projects for the company included wall cladding worth $13 million for Swire Properties' Devon House in Quarry Bay and shop-front decoration worth $8 million for the KCRC's Yuen Long Light Rail station.

The company is also installing column cladding, ceilings and all stainless steel fittings, valued at $17 million, for Eton Properties' new commercial complex in Shamshuipo.

Wardley Corporate Finance has been appointed by BSC as sponsor and underwriter for the proposed issue.