Printed circuit board maker aims to raise capacity by 23pc HannStar Board International, which aims to raise as much as HK$575 million in a Hong Kong initial public offering, plans to increase its monthly production capacity of printed circuit boards for notebook computers by 23 per cent to 3.7 million square feet next year, according to its preliminary prospectus. The company, a spin-off from Taiwan-listed HannStar Board Corp, makes double-sided printed circuit boards and boards with up to 12 layers for notebooks at its production base in Jiangyin city, Jiangsu province. It plans to add a plant that will boost its output capacity of three million sqft a month. The firm wants to make more circuit boards for consumer electronics to broaden its customer base and raise its plant utilisation rate. Printed circuit boards for notebooks accounted for 88 per cent of its turnover last year. The company, the world's largest maker of printed circuit boards for notebooks, is selling 325 million new shares, or 25 per cent of its enlarged share capital, for HK$1.37 to HK$1.77 each, or 7.9 times to 10.2 times this year's forecast earnings, sources close to the deal said. The firm's underwriters have been taking orders from institutions since Monday, and sales to individuals will begin early next month. More than half of the proceeds from the offering will be used to boost output, and about HK$160 million will go towards debt repayment, according to the preliminary prospectus. As of March 31, HannStar's borrowings were US$150.5 million, giving it a debt-equity ratio of 131 per cent. HannStar reported a net profit of US$23.4 million last year, up 157 per cent from 2004, on sales of US$170 million. In the first three months of this year, net profit surged 130 per cent to US$7.8 million from a year ago. The company intends to pay 30 per cent of its earnings in dividends. Polaris Securities and Taiwan Securities are the deal arrangers. Separately, another listing hopeful, Computime, is pre-marketing its 200 million share sale, representing 25 per cent of its enlarged share capital, to raise US$100 million this month. The Hong Kong electronic controls and automation devices maker generated 42 per cent of its turnover in the year to March from just five customers. More than 50 per cent of sales come from building and home electronic controls.