Controlling shareholders in three Hong Kong companies stand to make windfall earnings when their companies list this year.
Yesterday, three local companies unveiled plans to list on either the main board or the Growth Enterprise Market.
Cheung To-sang, chairman of Chinese restaurant operator Hon Po Group (Lobster King), said the company would offer 250 million shares, or 39 per cent of its share capital, at 20 HK cents each in a mainboard listing.
About 75 million shares would be old shares held by parent Ho Po Investment, which is majority controlled by Mr Cheung's family. After deducting earnings from the sale of the old shares and other listing expenses, the company will pocket net proceeds of only HK$23.8 million.
The company's prospectus also reveals it will pay a dividend of HK$224.6 million to its ultimate controller, Hon Po Holdings, on listing, which is scheduled for February 18.
The dividend is equal to more than 10 times the company's estimated profit of HK$21 million for the last financial year.