Two listing candidates brave tough markets in efforts to raise HK$2.8b
Landscaper Earthasia and lingerie maker Cosmo Lady among smaller offerings pitched to traders
Two listing candidates - Earth-asia International and Cosmo Lady - are looking to raise a combined HK$2.8 billion by listing their shares in Hong Kong.
In contrast to the mega-sized technology offerings in the US, the city's stock market is hosting a slew of small initial public offerings this month after issuers trimmed their expectations on the amount of capital they can raise given lacklustre market conditions.
Earthasia International, a landscape architecture service provider mainly for property developers, plans to raise about HK$1 billion from its flotation, making it the first-of-its-kind offering in the city.
The firm was aware of the delay in payment by property developers, but its decoration services were value-added to property sales, Patrick Lau Hing-tak, chairman of Earthasia, said yesterday.
It booked HK$48 million of trade receivables at the end of December last year, representing an increase of 100 per cent from 2012. Sales to property developers represented nearly 90 per cent of its entire revenue last year, followed by governments.
The firm will start taking orders from retail investors today, and the shares are due to start trading on June 25. The IPO shares are being offered at between HK$1 and HK$1.2 each.