Intime Department Store (Group), the largest department store chain in Zhejiang province, plans to raise as much as HK$2.07 billion in a Hong Kong initial public offering to fund expansion projects, particularly its Beijing joint venture with South Korean retail giant Lotte.
The company is offering 450 million new shares - 25 per cent of its enlarged share capital - at HK$4 to HK$5.20 each to raise the amount, according to a sale document given to fund managers.
It will be Intime's first overseas share offering.
The offer values the company at 18 to 24 times its forecast earnings of 395 million yuan for next year. Intime is expected to earn 315 million yuan this year, up from 205 million yuan last year.
Intime has granted an option for the arranger to sell an additional 67.5 million existing shares now owned by Warburg Pincus, a private equity fund whose stake after the listing will be 26 per cent.
The offering represents 25 per cent of the firm's enlarged share capital. The company and its sole bookrunner, Morgan Stanley, yesterday started receiving orders from institutional investors. Its international roadshow will end on March 12. Trading is scheduled to begin on March 20.
