Fosun International, a private conglomerate in Shanghai, has raised the price range for its Hong Kong initial public share offering after the institutional portion of the sale was five times oversubscribed on the second day of marketing.
Sources told Bloomberg the range has been revised to HK$6.98 to HK$9.23 from the original HK$6.48 to HK$8.68.
Fosun, whose businesses range from steel to property, pharmaceuticals, retail and financial services, is marketing its 1.25 billion shares or 20 per cent of its enlarged share capital in a bid to raise up to HK$11.54 billion.
The company plans to use 40 per cent of the proceeds to repay bank loans and 35 per cent to invest and buy assets in the steel, pharmaceuticals, financial services and retail industries.
It also plans to use 15 per cent of the proceeds for investment and acquisitions in the raw materials suppliers industry, especially iron ore and coking coal assets, according to its preliminary prospectus.
The remainder will be used for general working capital.
Fosun, which owns stakes in Zhaojin Mining Industry, Shanghai Forte Land, Nanjing Iron & Steel, Shanghai Fosun Pharmaceutical and Shanghai Yuyuan Tourist Mart, forecast that this year profit would double to at least 2.15 billion yuan from 1.09 billion yuan last year, the prospectus said.