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Xin Point to go public
Posted on Friday, 16 June 2017 07:43
Xin Point Holdings is raising up to HKD 855.00 million (USD 109.61 million) from an initial public offering (IPO) on the Hong Kong Stock Exchange (HKEX) as part of expansion plans.
The automotive plastic components maker, which is issuing 250.00 million shares to both foreign and domestic investors, plans to expand its production facilities in China and establish a new facility in Mexico.
It is also using the proceeds to step up marketing efforts, research and development and information technology system upgrades.
The stock on offer, priced at up to HKD 3.42 apiece, represents 25.0 per cent of its enlarged equity.
Cornerstone investor Bull Capital Partners has agreed in advance to subscribe for 63.50 million shares in the transaction.
Managed by BNP Paribas, ABCI Securities and Pacific Foundation, the IPO is expected to close by 28th June this year.
Established in 2002, Xin Point manufactures products such as interior door handles, shifter bezels, steering wheel components and cluster rings.
In terms of revenue, the group was the second-largest supplier and exporter of automotive plastic electroplated components in China last year, according to industry consultant Frost and Sullivan, as cited in the IPO prospectus.
Xin Point posted revenue of CNY 1.54 billion (USD 226.09 million) in the 12 months ended 31st December 2016, up 28.0 per cent on the CNY 1.20 billion recorded in the previous year.
Net profit for the period totalled CNY 298.30 million, compared to CNY 221.90 million in 2015.
Kin Shing became one of the latest companies to have listed on the HKEX today, raising HKD 142.50 million in the process.
The metal formwork manufacturer’s shares opened at HKD 0.76 on its first trading day, up significantly from its IPO price of HKD 0.38.
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