Anta Sports Products and Delta Networks yesterday began offering shares to institutional investors to raise up to HK$4.58 billion in their listing on the Hong Kong stock exchange, capitalising on the strong liquidity in the market.
Anta, which owns a popular athletic footwear brand in the mainland, may raise HK$3.17 billion while Delta Networks, a broadband internet equipment unit of Taiwan-listed Delta Electronics, could raise up to HK$1.41 billion.
Private firms such as Anta and Delta are taking advantage of Hong Kong's soaring equity market to raise funds. Turnover at the city's stock exchange reached a record HK$121.45 billion yesterday.
Other companies in the process of launching public offerings in Hong Kong include Centron Telecom International Holding, a wireless solution provider, mainland conglomerate Fosun Group, paper product maker Vinda International Holdings and Jiangsu Times Supermarket.
Anta would sell 600 million new shares at HK$4.28 to HK$5.28 each, or 23.78 to 29.33 times forecast earnings for this year, it said.
The company estimated this year's profit would be at least 384.4 million yuan, up 166 per cent from last year's 147.4 million yuan. It plans to distribute about 25 per cent of profit as dividends.
Leslie Alexander, who owns NBA basketball team Houston Rockets, has agreed to buy HK$234.51 million worth of shares in Anta. Based on the top end of the range, he will take a 1.78 per cent stake.