Brokerage Kim Eng Holdings (Hong Kong) has seen its profits slide in tandem with the share market since October after strong performances in the past three years, managing director and shareholder Terry Fok Kwong-hang says.
Mr Fok yesterday confirmed the company would today launch a $144 million initial public offering by selling 18 million new shares at $8 a share.
As company profitability is closely related to market turnover, the recent volatility meant any estimate of net profit in the year to March could not yet be determined, he said.
'Who knows? Hong Kong had a buoyant market last summer and the market went out of control in October.
'It's very difficult to say what time it will recover,' he said.
Kim Eng, which owns three securities licences and one futures trading licence, conducted only one placement in the past three months, compared with 24 during the year to last March 31, he said.