Ultra views the exercise primarily as one to raise its profile
Ultra Group Holdings, a mainland-based manufacturer of office furniture, plans to raise $13.85 million through a Growth Enterprise Market listing as part of efforts to expand its presence in China.
Ultra plans to sell all of its 135 million shares to the public at 21 cents each. More than half of the $28.35 million raised will be used to pay the fees of sponsor Deloitte & Touche Corporate Finance, lead manager Upbest Securities and co-lead manager Japan Asian Securities, along with other underwriters.
Asked why the company was going public when most of the proceeds would go towards listing fees, Ultra said the exercise would help it raise its corporate profile.
Of the $13.85 million in net proceeds, $5 million will go towards brand building, $5 million towards expanding its distribution network in China and $3 million will be used to launch new products.
'We see many multinationals expanding in China, moving their headquarters there. They are asking for more furniture to cope with their growth,' Ultra managing director Wendy Cho Yuen-yi said.
Upbest executive director George Li Kwok-cheung said Ultra was offering all its shares to the public to benefit from recent demand for mainland share offers.
