Three mainland companies aim to raise at least HK$500 million on the Hong Kong stock market this month despite depressed conditions, according to market sources.
Changmao Biochemical Engineering, based in Changzhou, Zhejiang province, hopes to raise HK$80 million to HK$100 million by listing on the Growth Enterprise Market.
The company produces edible organic acids used in beverages, as well as pharmaceutical intermediate products.
Japan, the United States and Europe account for between 80 and 90 per cent of sales, with the rest going to the domestic market. One of its edible organic acid customers is Procter and Gamble.
It is expected to hold a roadshow in Hong Kong this week to market its initial public offering of H shares.
Changmao's net profit rose from about HK$20 million in 2000 to HK$30 million last year, the sources said.
