SIU-Fung Holdings, a ceramics and machinery manufacturer and distributor, is to raise $561.96 million by issuing 334.5 million new shares at $1.68 each, to invest in joint-venture plants in China.
Siu-Fung chairman Siegfried Lee said about $230 million of the proceeds, 25 per cent of the enlarged share capital, would be invested in projects expected to be operating before 1995.
Application forms for the issue are available from today and the offer will close on Friday.
The share price is pitched at a price-earnings multiple of 8.8 on a weighted average basis, and 10.2 on a fully diluted basis.
The company has 28 turnkey contracts in hand, with a total value of about US$200 million, and is involved in the setting up of 31 joint-venture ceramics plants in Beijing, Inner Mongolia and nine Chinese provinces.
Vice-chairman Peter Lee Sheung-yam said most of the 5,000 Chinese plants had outdated machinery and technology, and needed modernisation.
