Millennium Sense Holdings, a maker of cigarette lighters, expects growth in new markets to compensate for any lost revenue from anti-smoking campaigns in the United States. Executive director Juan Romero Villalba said sales in developing countries were expected to offset any lower revenue from the US, where the main-board listing candidate derived 40.8 per cent of its sales in the year to June 30 last year. Millennium's net profit eased 5.3 per cent from the previous year to HK$28.14 million, while the company's gross profit margin fell to 37.4 per cent from 41.1 per cent previously. In this period, sales fell 7 per cent from a year earlier to HK$166.38 million, but US sales declined 34.5 per cent to HK$67.87 million. The company has forecast a net profit before extraordinary items of not less than HK$30 million for the year to June 30 this year. It is seeking to raise net proceeds of about HK$22 million from the listing to mainly fund automation and expansion of production facilities and repay bank loans. The proceeds target is one of the smallest among all main board listings. It is planning to issue 30 million new shares at HK$1 each, while majority shareholder chairman Anthony Sher Tak-chi and his family will sell 20 million existing shares at the same price, allowing the family to raise HK$20 million. About 30 per cent of the shares will be sold to the public, with the remainder to institutional investors. Mr Sher denied the decision to sell such a large number of existing shares was a reflection of his family's lack of confidence in the company's future prospects, adding 'it was purely a commercial decision'. Celestial Securities analyst Felix Ho Lap-chi said after the listing presentation that the company's valuation was 'reasonable but not particularly attractive given many industrial new listings were offered at similar valuations'. Millennium's pro-forma fully diluted prospective price-earnings multiple is 4.8. Mr Ho said the company faces stiff competition in an industry deploying relatively little technology, which allows relatively easy entrance to the market.