Eagle Brand launches offer in Singapore to raise US$43m

Mainland-based ceramics-maker Eagle Brand Holdings launched a public offer in Singapore, intending to raise US$43.7 million between today and February 4.

The Foshan-based company issued 230 million shares in its listing on the main board of the Singapore Stock Exchange.

The offer, representing 20 per cent of the company, comprises an international placement of 207 million shares and a public offer of 23 million shares.

Priced at 19 cents each, the issue is sold on a price-earnings ratio of 6.1 times its estimated earnings.

The international placement was completed with a positive reception, joint lead placement agent Development Bank of Singapore (DBS) said yesterday. China International Capital Corp is another joint lead placement agent.

The company plans to use about $8 million to buy land-use rights for the land on which the group is located, $2.5 million to build a ceramic sanitary-ware warehouse, $2 million to develop and expand its ceramic tile product range, and $17.7 million as working capital.