China-based Great Group Holdings launches mainboard IPO
Undergarment maker’s IPO of 80m shares priced at 29.5 cents
By FELDA CHAY 17 September 2009
China-based undergarments manufacturer Great Group Holdings Ltd has launched its initial public offering for a Singapore Exchange mainboard listing.
The company is raising gross proceeds of about $19.2 million from its offer of 65 million new shares at 29.5 cents. Also on offer are 15 million vendor shares, making it an IPO of 80 million shares. Of the 80 million shares, two million are for public offer and 78 million for placement. The invitation shares constitute 30.19 per cent of the group’s enlarged share capital.
The offer opens today and closes on Sept 23. Trading of its shares is expected to begin on Sept 25. The issue is priced at a historical price-to-earnings ratio of 4.1 times, based on FY2008’s net earnings per share of 7.2 cents using the pre-invitation share capital of 200 million shares.
Of the expected net proceeds of $15.8 million, about $8 million will be used for the construction of new premises at the Jiangnan High-Tech Information Industrial Zone in the Fujian province, where its business and production operations will be consolidated.
It also plans to spend $3 million each to increase its marketing efforts and on expanding its production capacity and facilities.
The rest of its proceeds are likely to go into increasing the company’s work capital, enhancing the marketing and promotion efforts for its products, and R&D efforts.
Despite the current economic downturn, the executive chairman and chief executive of Great Group, William Weng, said that the company’s business outlook remains favourable because of the growing demand for undergarments, and children’s and infant’s apparel contract manufacturing services offered in China. ‘As a manufacturer of undergarments, we are in a defensive business with products which serve consumers’ basic everyday needs,’ said Mr. Weng.
He also said that the group now has 102 points of sales, and hopes to increase this to 200 in the next three years.
For FY2008, Great Group saw its net profit jump 25.3 per cent to 70.8 million yuan from 56.5 million yuan a year ago. Revenue surged 52.8 per cent to 400.8 million yuan from 262.3 million yuan for the preceding year on higher sales from its contract manufacturing products.
Daiwa Securities SMBC Singapore Ltd is the manager, underwriter and placement agent for the listing.
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China-based Great Group Holdings launches mainboard IPO
Undergarment maker’s IPO of 80m shares priced at 29.5 cents
By FELDA CHAY
17 September 2009
China-based undergarments manufacturer Great Group Holdings Ltd has launched its initial public offering for a Singapore Exchange mainboard listing.
The company is raising gross proceeds of about $19.2 million from its offer of 65 million new shares at 29.5 cents. Also on offer are 15 million vendor shares, making it an IPO of 80 million shares. Of the 80 million shares, two million are for public offer and 78 million for placement. The invitation shares constitute 30.19 per cent of the group’s enlarged share capital.
The offer opens today and closes on Sept 23. Trading of its shares is expected to begin on Sept 25. The issue is priced at a historical price-to-earnings ratio of 4.1 times, based on FY2008’s net earnings per share of 7.2 cents using the pre-invitation share capital of 200 million shares.
Of the expected net proceeds of $15.8 million, about $8 million will be used for the construction of new premises at the Jiangnan High-Tech Information Industrial Zone in the Fujian province, where its business and production operations will be consolidated.
It also plans to spend $3 million each to increase its marketing efforts and on expanding its production capacity and facilities.
The rest of its proceeds are likely to go into increasing the company’s work capital, enhancing the marketing and promotion efforts for its products, and R&D efforts.
Despite the current economic downturn, the executive chairman and chief executive of Great Group, William Weng, said that the company’s business outlook remains favourable because of the growing demand for undergarments, and children’s and infant’s apparel contract manufacturing services offered in China. ‘As a manufacturer of undergarments, we are in a defensive business with products which serve consumers’ basic everyday needs,’ said Mr. Weng.
He also said that the group now has 102 points of sales, and hopes to increase this to 200 in the next three years.
For FY2008, Great Group saw its net profit jump 25.3 per cent to 70.8 million yuan from 56.5 million yuan a year ago. Revenue surged 52.8 per cent to 400.8 million yuan from 262.3 million yuan for the preceding year on higher sales from its contract manufacturing products.
Daiwa Securities SMBC Singapore Ltd is the manager, underwriter and placement agent for the listing.
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