ITE Technology aims to raise up to HK$40.5 million to fund product development and marketing through a Growth Enterprise Market (GEM) listing this month.
Sources said the company yesterday began its planned offering of 45 million new shares to institutional investors for between 73 HK cents and 93 HK cents each, to raise between HK$32.85 million and HK$40.5 million.
The company provides integration solutions mainly to property developers and universities on their implementation of smart-card technology. Smart cards have electronic components that enable functions such as people-access control, personal identification and payment for products and services.
Chief executive Vincent Lau said the company designed its smart-card, reading-system software and hardware, but contracted out hardware production to mainland and local manufacturers.
It sourced the smart cards from France and Germany.
Mr Lau said the company made a net profit of more than HK$1 million on turnover of more than HK$10 million in the year to March 31.