Win Hanverky Holdings, a Hong Kong apparel firm seeking to raise more than HK$700 million through an initial public offering, saw the institutional tranche of its share sale several times oversubscribed, DBS Asia Capital said.
'We've been to Singapore, London, Dubai and Abu Dhabi. The reception from major fund managers was very positive,' said George Hongchoy, DBS Asia Capital managing director. 'We have high-quality international institutional investors who have put in good orders.'
Win Hanverky, which relies on sportswear giant Adidas for almost half its sales, is offering 270 million placing shares to institutional investors and 30 million shares to the public, subject to re-allocation.
The offer price will range from HK$1.98 to HK$2.38 per share, which translates to gross proceeds between HK$594 million and HK$714 million, and a price-earnings ratio between 9.84 and 11.82.
DBS, the global co-ordinator, lead manager and sponsor, started meeting institutional investors in Hong Kong yesterday.
The public offer, which starts today, and the institutional placing will both end next Wednesday, before trading starts on September 6.
Win Hanverky will use HK$270 million of the proceeds to expand its sportswear manufacturing and HK$250 million to expand its sportswear distribution business in China and Hong Kong.
