The controlling shareholder of printed circuit board maker Fu Cheong International Holdings is to sell 120 million existing shares as part of its main-board initial public offering. The shares are equal to 40 per cent of the 300 million old and new shares on offer. Chairman Roy Ho Wing-cheong, who controls seller Advanced Technology, said the disposal was designed to enhance the liquidity of the company's shares and avoid excessive dilution of existing interests. Fu Cheong supplies printed circuit boards to electronic goods makers such as Sharp, Philips and Canon. Last August, it entered into a three-year service agreement with its three executive directors, under which they would together receive HK$4.78 million annually. This is 54.1 per cent higher than directors' remuneration of HK$3.1 million in 2000. The forecast net profit for this year of not less than HK$40 million is 30 per cent higher than the HK$30.77 million for 2000. Net profit for 2000 rose marginally from HK$30.63 million in 1999, as turnover slipped 5.5 per cent year on year to HK$158.1 million. In the first nine months of last year, net profit was HK$30.5 million. Accounts receivable rose from HK$13.88 million at the end of 2000 to HK$32.6 million on September 30 last year. Turnover for the first nine months of last year was 4.9 per cent down from 2000. The firm aims to raise HK$27 million by selling 180 million new shares at 20 HK cents each. They will start trading on March 27.
