THE only authorised distributor of fresh food and livestock from Guangdong to Hong Kong opens its public offering of 110 million shares at $1.03 per share today. Hong Kong-based Guangnan (Holdings), formerly a wholly-owned subsidiary of Guangdong Enterprises - an investment arm of the province - aims for a net of $101 million from the issue. Sponsors and lead underwriters are Goldwyn Capital and Normura International (Hong Kong). Goldwyn director John Kao said: 'All Guangnan's takings are in Hong Kong dollars. 'Local people should have confidence in it.' The company's consolidated profit after taxation for the year to December 31 is forecast to be at least $56.6 million. The price-earnings multiple is at 8.01 times based the 440 million shares in issue and the issue price. Guangnan chairman Sun Guan said he was not worried about the plunging market: 'We've planned the listing as part of our development and whether the market is having ups-and-downs does not concern us much.' The offer price was conservative and would be attractive to the market, Mr Kao said. 'Guangnan is in a staple food business which will be easily understood by prospective investors because of its importance to the lives of the people in Hong Kong. 'I think food supply is something that will be as important no matter how the stock market is doing.' Guangnan supplies 98 per cent of the territory's daily consumption of fresh water fish, 87 per cent of poultry, 60 per cent of vegetables and 15 per cent of live pigs. Rice and soya sauce are among other processed foods it supplies. Mr Sun said that the listing of the company only ensured a more stable supply of food to Hong Kong and the capital raised would be spent on expansion of its operations. He said out of the $101 million, $50 million would be used for general expansion; $30 million for working capital; $15 million would go on a Guangzhou joint-venture for poultry slaughter and $6 million for two joint-ventures in Shunde and Zhongshan for fish processing. After the floatation, Guangdong Investment's attributable interest in the company will be about 26 per cent and Guangdong Enterprises 61 per cent - Guangdong Enterprises holds 44 per cent stake of Guangdong Investment.