Xiashun Holdings, the mainland's largest light-gauge aluminium foil manufacturer, plans to raise as much as HK$2.13 billion by selling new shares in Hong Kong to fund capacity expansion, a source close to the offering said.
The listing candidate yesterday kicked off the international roadshow, offering 500 million new shares at HK$3.10 to HK$4.25 each. The price represents 14 to 19 times the firm's forecast earnings for next year, according to a sale document.
The firm will use 60 per cent of the proceeds to fund equipment purchases and other items related to upstream expansion, 30 per cent for strategic acquisitions, joint ventures and upgrading and expanding existing manufacturing facilities, and the rest as working capital, the document shows.
The order book for institutional investors opened yesterday and will close on December 10.
Trading is scheduled to start on December 18.
A source close to the offering said the firm brought in three cornerstone investors to invest a total of US$45 million ahead of its global offering.
