Child-care products trader Wiltec Holding says it will spend $26 million of its listing proceeds on a factory in Guangdong to produce child-care and child-safety products.
Director Chen Shouson said the company had yet to decide whether to buy an existing factory or build a new one.
'Whatever course of action has been taken over the facility issue, we are confident we can commence the experimental phase of production in the fourth quarter of 1998,' he said.
Wiltec yesterday announced it will issue 50.6 million new shares at $1 a share, with one bonus warrant for every five shares, raising a net $38.6 million.
Turnover at the company for the four months to July was $76.9 million while net profit was $16.5 million.
Net margin soared to 21.4 per cent compared with 14.9 per cent for the year to March.