HONG KONG - Tai Hing Catering Group on Thursday started offering shares ahead of its planned initial public offering in Hong Kong, which, it expects, could raise up to HK$950 (US$120 million).
The owner of several local restaurant chains has set an indicative share price range of between HK$2.80 and HK$3.80, with 250 million shares on offer, Tai Hing said
The owner of several local restaurant chains has set an indicative share price range of between HK$2.80 and HK$3.80, with 250 million shares on offer, Tai Hing said at a press conference on Thursday. Of the shares, 225 million are for international investors and 25 million are for Hong Kong players. It offers a board lot of 1,000 shares, with a minimum subscription fee of around HK$3,838.
Aiming to begin trading on the main board on June 13, the group, which operates a total of eight restaurant brands including Tai Hing, Teawood and Congee King, is expected to be the one of the largest listings compared with its local counterparts in recent years.
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Owning 191 restaurants in the city, Tai Hing also has 63 on the Chinese mainland, as well as one in Macao and Taiwan.
Its revenue rose by 12.8 percent year-on-year to HK$3.13 billion in last year, with Tai Hing - its flagship brand - contributing 64.7 percent of revenue, and TeaWood, accounting for 17.8 percent.
Bank of Communications International is sole sponsor of the deal, while Nomura and China Haitong Securities were listed in its prospectus as the joint-global coordinator.
Tai Hing’s upcoming flotation in Hong Kong comes alongside other recent listings such as those of China State Shipbuilding Corporation (CSSC Hong Kong) Shipping Company, and China Tobacco International (HK) Company.
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This follows a cooling-off in the city’s IPO market after an impressive performance in 2018. That year, Hong Kong re-took the top spot from New York to become the world’s No. 1 IPO market. But this year an uncertain environment weakened demand for new issues, leaving more companies hesitant about tapping into the capital market for funds.
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