The Taiwanese-controlled company will use the funds to upgrade production
A mainland-based cement maker linked to one of Taiwan's most powerful families plans to list on the main board, in a move which could raise as much as HK$423.28 million to expand production.
Chia Hsin Cement Greater China Holding, based in Jiangsu province and a spin-off of Taipei-listed Chia Hsin Cement, is to sell 286 million shares at HK$1.48 each. Seventy per cent of the offer will be new shares and the remainder existing shares.
The company, whose core business is manufacturing and distributing low and high-grade cement in mainland coastal regions, will have an estimated market capitalisation of HK$1.62 billion.
The sale price values Chia Hsin at 13.8 times forecast earnings for this year.
The valuation is lower than the 20.72 price-earnings multiple commanded by the mainland's largest cement maker, Anhui Conch Cement, and 16.42 times for China Resources Cement Holdings, based on a Thomson First Call poll of analyst earnings estimates.