Luen Fat Hong seeks listing to finance machinery, transport

The major shareholders of plastic sheet maker Luen Fat Hong International Holdings plan to float their plywood business on the stock exchange after the company's own $96 million listing in 1995, sources say.

It is understood that chairman William Wong Chak-ming and deputy chairman Hui Lap Chun are seeking advice from financial adviser HSBC Corporate Finance, which was also the sponsor and underwriter of Luen Fat Hong's listing.

The proposed listing will include the plywood making and trading business in Laos, Indo-China.

The plywood maker is 75 per cent owned by Mr Wong and 35 per cent by Mr Hui through a holding company while they hold a 50.03 per cent stake of Luen Fat Hong through Zurich.

It has two plants in Laos producing about 70,000 cubic metres of plywood a year and is the only authorised plywood company with forestry rights there.

The company plans to spend the proceeds, yet to be decided, on adding new machinery and buying trucks to deliver logs.