Funeral firm Nirvana Asia is looking to raise up to HK$2.2 billion in a Hong Kong initial public offering as it opens retail book-building on Thursday, the Malaysian company said in a regulatory filing.
Nirvana focuses on providing “death care” services to ethnic Chinese in Southeast Asia. The indicative price range of the shares was set at between HK$3 and HK$3.38. Beijing-based Taikang Life Insurance had subscribed as a cornerstone investor, agreeing to invest HK$232.5 million in the offering, the filing said.
The company said it would target development in China after entering into a memorandum of understanding this year with a mainland cemetery operator and was considering the development of land in Guangdong province.
The filing also acknowledged its failed attempt in 2008 to move into Cambodian “death care” services, from which it eventually withdrew.
Shanghai-based funeral firm Fu Shou Yuan received a warm response from investors last December, with its US$215 million initial public offering nearly 700 times oversubscribed. That was followed by a 44.7 per cent jump in its share price when it made its Hong Kong listing debut on December 19.