Computime Group, a specialist manufacturer of electronic controls and automation devices, will target acquisitions and focus on research and development after completing its initial public offering early next month.
The 32-year-old Hong Kong firm expects to raise more than HK$400 million by selling 200 million new shares at about HK$2 each, according to market sources.
JP Morgan is the listing sponsor, DBS is co-lead manager and HSBC the financial adviser.
Computime, which has more than 8,500 employees worldwide and production facilities in the mainland, supplies standard and customised control devices used in buildings and homes, and for commercial, industrial and consumer product applications.
Customers include Chamberlain, Electrolux, General Electric, Trane and Whirlpool. Computime said annual revenue for the year to March was HK$1.9 billion and net profit was HK$140 million. These compared with revenue of HK$1.8 billion and net profit of HK$132 million in the previous year.
Computime has spent just 2 per cent annually on research and development at its centres in Hong Kong, Chicago and Shenzhen.