Global Flex Holding, a maker of flexible printed circuit boards, plans a Hong Kong initial public offering next month to raise up to US$75 million, a source said.
'The firm has received approval from the listing committee and began pre-marketing [yesterday],' the source said, adding the retail tranche would open on July 11.
Global Flex designs, manufactures and assembles flexible printed circuits used in products such as folding mobile phones. About 70 per cent of its revenues come from the telecommunications business. The firm was one of Motorola's global suppliers, the source said.
Taiwan-listed Vertex Precision is the company's single largest shareholder and will still own more than 50 per cent of the Suzhou-based firm after the offering.
Global Flex's offer is small compared with this month's listings by China Shenhua Energy and Bank of Communications, which raised $22.97 billion and $14.63 billion respectively, but it will be one of the largest next month.
Investor appetite for new listings has been tepid in recent weeks. The retail tranche for new shares in shipping firm China Cosco Holdings was barely covered, while weak demand for shares in SIM Technology forced issuers to price them near the bottom of the indicative range.