New York-listed Nam Tai Electronics was pressing ahead with its plan to spin off a subsidiary on the main board to fund capacity expansion and a technological upgrade, according to market sources.
The listing vehicle, Nam Tai Electronic & Electrical Products, had applied to the Hong Kong stock exchange and appointed HSBC as the sponsor of the deal, the sources said.
Nam Tai Electronics has said the initial public offering is aimed at raising the profile of its China operations in the region.
It is believed the company wants to capitalise on investor interest in the growing trend of outsourcing electronic goods production to China.
Recently incorporated in the Cayman Islands for the listing, Nam Tai Electronic & Electrical Products will own a controlling stake of Namtai Electronic (Shenzhen), which produces calculators, electronic dictionaries, mobile-phone accessories and a range of home entertainment gadgets and devices.
Nam Tai Electronic & Electrical Products chairman Karene K.L. Wong, said outsourcing to electronics manufacturing companies in the mainland was expected to grow 30 per cent annually from 2002 to 2007.
This is compared with an average annual growth of 21.2 per cent in Asia and 10.2 per cent globally.