Bio Beauty Group, a skin-care unit of Global Green Tech Group, is seeking to gain a listing in Hong Kong by way of introduction - without raising funds - in lieu of a HK$2.4 billion initial public offering it planned earlier, market sources said.
The firm has filed a new application for a separate listing with the Hong Kong stock exchange after the previous application lapsed. A listing timetable will be formulated pending regulatory approval and minority shareholders' endorsement at a special general meeting.
One source said the proposal to minority shareholders will involve issuing them one new Bio Beauty share for every seven shares they hold in Global Green, a group specialising in biotech products and waste-water treatment.
'Bio Beauty is aggressively tapping the global cosmetic market so a listing status will allow it to broaden its customer base and gain greater exposure,' the source said.
Macquarie Securities and ICEA are the joint sponsors of the deal while JP Morgan, a bookrunner of the planned offering in January, is no longer involved.
Companies without urgent funding needs can seek a listing status by introduction. It was by this method that Playmates Holdings, which sells Teenage Mutant Ninja Turtle action figures, spun off its toy unit Playmate Toys on the main board in early February.
'The weak market sentiment allows a listing candidate only two options: cut the size or further delay its offering,' a banker said.