RESTAURANT operator Tack Hsin Holdings is aiming to raise about $80 million for expansion in China through an issue of new shares.
The offering, expected after the Lunar New Year, will include the issue of one free warrant for every five shares.
The Standard Chartered Asia-sponsored issue will carry a price-earnings multiple of about eight.
About half of the funds raised would be used to finance establishment of restaurants in China, with the remainder going towards debt reduction and as working capital.
Mr Ivan Au Yee-ming, executive vice-chairman of Tack Hsin, said the company was committed to leasing 380,000 sq ft of space at the Taiwan Garden Building in Shenzhen to operate its first restaurant in China.
He said the Shenzhen outlet, involving an investment of more than $10 million, was due to open in the middle of the year.