Leather trader seeks $50m

GARMENT leather trader Dah Hwa International (Holdings) is to raise $50 million with an offer of 50 million shares at $1 each from today until Friday.

The 40 million new shares and 10 million existing shares represent 29.76 per cent of the company's enlarged share capital.

On a fully diluted basis, the prospective price-earnings multiple is seven, on projected 1994 earnings of $24 million.

Trading in the company's shares is expected to begin on October 5.

Dao Heng Securities is sponsoring and underwriting the issue.

Set up in the early 1950s, Dah Hwa became a major garment leather trader in the late 1960s, and now plans to diversify into trading leather to make footwear, handbags, furniture and watch straps.