Kwang Sung Electronics, which makes electronic components, aims at becoming the second South Korean-invested company to float on the Hong Kong stock market by raising $117 million. Stuffed-toy maker Dream International was the first Korean firm to float on the Hong Kong exchange when it raised $195 million through an initial public offering last year. Both Kwang Sung and Dream International have factories in China. Kwang Sung chairman Yang Jai-sung said Hong Kong was chosen because it was close to the firm's market and China operations. The company, which will list on the main board, makes electronic components and composite components used in cordless telephones, video-cassette recorders, car audios and home audios as well as tuner modules for hi-fi sets. Net profit last year rose 96.7 per cent to $63.15 million, while turnover climbed 39.21 per cent to $396.95 million. The price for the share offering has been set at $1.30, near the top end of the tentative range of between $1.18 and $1.36. About 81 million offer shares will be placed with institutional investors with nine million to be sold to the public. The offering will account for 30 per cent of the company's enlarged share capital.
