Hin Sang Group, known for its Hin Sang-branded milk and dietary supplements for children, said the allotment of its shares is 860 times oversubscribed, with trading of the stock scheduled to start on Thursday in Hong Kong.
“The shares initially offered under the public offer have been significantly oversubscribed,” the company said.
More than 34,000 valid applications for 17.2 billion shares were received at the close of the application on Wednesday, representing 860 times of the 20 million shares initially available for subscription.
With an initial offer price of HK$1.18 a piece, Hin Sang will raise net proceeds of HK$217 million.
As much as 48 per cent, or HK$104 million, would be used to explore business collaboration opportunities with new brand proprietors, the firm said.
It also said 25 per cent would be used to expand sales and its distribution network, while 15 per cent would be spent on enhancing marketing and promotion activities in mainland China. The rest will be used to expand its product portfolio or for general working capital.