Taiwan Cement Corp (TCC), controlled by the influential Koo family, is to spin off cement distributor TCC Hong Kong Cement Holdings on the Hong Kong exchange early next month in a flotation to raise about $160 million.
TCC Hong Kong Cement chairman Leslie Koo Cheng-yun said the company, which has operated in Hong Kong for 30 years, wanted to list in Hong Kong after being run independently of its holding company since 1994.
To maintain its independence, the stock exchange has stipulated the company not import from its parent more than 60 per cent of its turnover, managing director Wu Yih-chin said.
In the past few years, the proportion has been maintained below 50 per cent of turnover.
He said TCC Hong Kong's sales had jumped six-fold and profits three-fold in the past three years since the restructuring.
'Our market share is about 12 to 13 per cent with an annual volume of 600,000 tonnes, and we want to develop TCC Hong Kong as a regional distribution centre in the Asia Pacific region,' Mr Koo said.