Although Singapore-based Midas Holdings is seeking a secondary listing in Hong Kong, it said Hong Kong may ultimately become its primary listing.
The company said in its prospectus that the listing authorities in the city might determine that Midas' primary listing was in Hong Kong if, among other things, most trading occurred on the Hong Kong bourse.
'There is no assurance that our secondary listing status will continue in future. In such an event, the waivers from strict compliance granted to our company on the basis of a secondary listing will be revoked,' the prospectus said.
However, Patrick Chew Hwa Kwang, chief executive and co-founder of the company, which makes extruded aluminium alloy products, said Singapore would remain the group's primary listing for the foreseeable future.
'As our business and operations are principally located in China, we believe the Hong Kong listing will enhance Midas's profile in China and Hong Kong, thereby strengthening its long-term growth prospects,' he said. The Hong Kong listing would provide an additional channel to raise capital and gain access to a wider range of institutional and retail investors, Chew said.
Midas, which has a market capitalisation of US$725 million, plans to offer 220 million shares on the Hong Kong main board at a maximum offer of HK$6.10 each, raising a maximum of HK$1.34 billion. Trading of Midas' Hong Kong shares start on October 6, with 90 per cent of the offer shares allocated to institutional investors.