VOLTAGE converter manufacturer All Pantronic Holdings will use about $12 million of proceeds from its $87 million share issue to finance a telecommunications manufacturing joint venture in China.
The group owns a 60 per cent stake in the joint venture plant in Songgang, while the mainland partner, Baoan District Songgang County Economic Development, owns 40 per cent.
Subject to approval by the Ministry of Posts and Telecommunications, the plant has the right to sell 10 per cent of its telecommunications products in China.
All Pantronic is offering 68 million new shares at $1.28 each, with one free warrant for every five shares subscribed.
The shares are pitched at a price-earnings multiple of 5.9 on a weighted average and 7.5 on a fully-diluted basis.
The group forecasts a profit of at least $44 million for the year ended March 31, compared with $34.2 million in the previous year.