Dah Chong Hong gets heavyweight backing
Dah Chong Hong Holdings, a unit of conglomerate Citic Pacific, has brought in tycoons Li Ka-shing, Cheng Yu-tung and Lee Shau-kee as cornerstone investors for its planned HK$4.3 billion initial public offering next month.
The car retailer will begin its international offering today and will meet local investors on Friday.
The offer, sponsored by BNP Paribas Capital, will comprise 601.2 million existing Dah Chong Hong shares sold by its parent and 180 million new shares, Citic Pacific said. The share sale may value Dah Chong Hong at HK$10.58 billion.
After completion of the offering, Citic Pacific's stake in Dah Chong Hong will stand at 56.6 per cent and 50.1 per cent on the execution of its greenshoe option.
Dah Chong Hong is engaged in motor vehicle sales, motor vehicle-related business, sales of food and consumer products, as well as logistics services.
The firm said 46 per cent of the offering's proceeds would be spent over the next three years for the expansion of its motor vehicle business, 23 per cent on consumer products and 30 per cent on logistics business.
