Hong Kong gets another thumbs-up as exhibition organiser for Chanel, LV joins IPO bandwagon
- Company endorsed by actress Carina Lau Kar-ling is seeking fresh capital to fund growth in Greater Bay Area
- Five other companies have also unveiled their IPO plans on Monday alone, seeking at least HK$3 billion of proceeds
Hong Kong is getting another thumbs-up as a centre for growth capital as more mainland companies seek stock exchange listings in the city despite lingering concerns about social unrest in the new year.
Activation Group Holdings, which organises events and exhibitions for luxury brands like Chanel, Louis Vuitton and Mercedes-Benz in mainland market, is aiming to raise HK$538.2 million from an initial public offering in January to help fund its expansion.
The Shanghai-based company, which also promotes actress Carina Lau Kar-ling’s fashion label, is among six corporations which unveiled their IPOs on Monday alone, suggesting companies are keeping a positive outlook on the market.
The company will offer 200 million shares to global investors at HK$1.71 to HK$2.34 apiece, subject to final pricing. Based on the top end of the range, plus a potential overallotment of 30 million shares, the offering could raise as much as HK$538.2 million (US$69 million).
It will take orders from investors from December 31 until through January 9, according to its listing timetable. The shares could start trading on January 16.
Activation Group plans to expand its business in the Greater Bay Area, a business hub comprising Hong Kong, Macau and nine other cities in the southern Guangdong province, Steve Lau Kam-yiu, co-chairman and chief executive said in an interview with the Post.