Midas Printing Group is set to raise a net $49 million through a Stock Exchange listing aimed at funding the expansion of its production facilities across the border.
The company, involved in commercial, magazine, newspaper and book printing, is proposing to sell 50 million shares at $1.18 each, reflecting a pro forma price earnings multiple of 5.39 times prospective earnings.
The origins of Midas date back to January 1990 when Lau Chuk-kin, Martin Tang Yue-nien and Wan Siu-kau bought an 80 per cent interest in commercial printer Jardine Printing from Jardine Matheson. Late 1990 they bought the outstanding 20 per cent.
Of the listing proceeds, it plans to sink $25 million into buying the land-use rights of a 400,000-square-foot plot located next to its existing factory in Boluo, Guangdong province.
The company will also spend $15 million buying new machinery for its two factories in the territory.
Mr Lau, managing director, said Midas wanted to concentrate more on packaging printing because of its higher profit margins than those of book printing.
'Since the quantity of each packaging printing order is robust, we can benefit from utilising our large-scale machinery,' Mr Lau said.
