HK markets lure Zhejiang companies
While provincial officials attending the Zhejiang Week investment fair charm foreign direct investors, the province's companies are looking to tap Hong Kong's markets.
Ningbo-based stationery maker Beifa Group hopes to raise US$10 million by floating a 25 per cent stake on the main board this year, says president Qiu Zhiming.
The company has completed a restructuring and has appointed Ernst & Young as its financial adviser. Although it has yet to file an application with the Hong Kong stock exchange, management expects a listing to materialise this year.
'We are now looking for a suitable sponsor for the listing. We hope to get an appropriate timing for the plan this year,' said Mr Qiu on the sidelines of Zhejiang Week.
Beifa yesterday signed an agreement with an institutional investor that agreed to take an equity stake of up to 10 per cent. Mr Qiu said the company was also in talks with another strategic investor, which could take a 20 per cent stake.
Textile company Zhejiang Zhongbo and stainless-steel furniture maker Ningbo Zhefeng also plan to go public in Hong Kong, according to information provided by the organiser of Zhejiang Week.
Zhongbo plans to raise up to 80 million yuan by listing on the Growth Enterprise Market by the end of this year while Zhefeng plans to file a listing application with Hong Kong Exchanges and Clearing next month.
