PLASTIC moulds company Lung Kee has priced the 50 million shares in its initial public offer at $1.21 each.
The amount being offered to the public is about 25 per cent of the company's enlarged issued capital.
Lung Kee intends using about $25 million of the $53 million to be raised in the issue to buy extra plant and machinery.
A further $15 million will be used to finance the third phase of its plant in Dongguan, Guangdong, with production expected to start at the end of next year.
Of the remaining funds to be raised, $3 million will be used to set up a marketing operation in Malaysia, $5 million to set up a subsidiary trading in mould-manufacturing machinery and the remaining $5 million to reduce bank borrowing.
Lung Kee's main activity is the design, manufacture and sale of prefabricated metal moulds used in forming plastic products.