Qingdao companies chase funding through listing shares on GEM
Six Qingdao companies are planning initial public offerings in Hong Kong in the near future, according to government officials attending the Qingdao trade fair under way at the Hong Kong Convention and Exhibition Centre.
They are Qingdao Huaren Pharmaceutical, ETSong, Gaoxao, GRen, Kingking and Hisense Network Technology.
Qiu Xuedong, of the Qingdao municipal government office for restructuring the economic system, said yesterday they were mostly looking to raise between HK$200 million and HK$300 million each on the Growth Enterprise Market (GEM).
Qingdao Huaren Pharmaceutical, which makes non-PVC soft-bag transfusion products, is hoping to raise 545 million yuan (about HK$510 million) from a GEM listing for construction of a plant capable of producing 100 million non-PVC soft bags annually.
ETSong makes plastic geogrids, polymer grid-like sheets used to reinforce unstable soil and waste masses.
It hopes to raise about 200 million yuan to expand production facilities.
Its only production line began making geogrids last month. ETSong is unable to make geogrids fast enough for its 20 million yuan worth of orders.
Software company Gaoxao aims to raise between 200 million yuan and 300 million yuan to further develop firewall security software.
Environmentally safe tyre-maker GRen aims hopes to raise enough funds to renovate its manufacturing plant and to upgrade a plastic-recycling project.
Kingking plans to spend 70 million yuan to develop new polymer-based compounds and products, 20 million yuan to set up a domestic sales network and 10 million for research and development.
Hisense Network Technology is a subsidiary of consumer electronics manufacturer and Shanghai A-share Hisense Group.
It markets software and says its point-of-sales products hold a 16 per cent market share in the mainland.
The Qingdao Municipal Government brought representatives from the six companies to Hong Kong to meet officials of Hong Kong Exchanges and Clearing and potential underwriters.
Qingdao officials say there are more companies interested in listing in Hong Kong.
At least 50 enterprises have expressed their intention to seek a listing in Hong Kong to the Qingdao Government and 14 of these have entered the guidance period required for a public listing. To date, Qingdao is home to nine companies listed either domestically or in Hong Kong, including multinational corporations Tsingtao Beer and Haier.
Last year, Qingdao's companies raised 4.5 billion yuan, the most for any city in the mainland after Shenzhen.
