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Biel aims to sparkle in 2017 IPO: SCMP
Posted on Friday, 16 June 2017 10:44
A HKD 10.00 billion (USD 1.28 billion) listing is on the cards this year for Biel Crystal Manufactory, the largest touchscreen supplier for Apple and Samsung Electronics, Yeung Kin-Man told the South China Morning Post (SCMP).
If this is correct, then the Hong Kong-based cover glass manufacturer is on course to holding one of the largest initial public offering (IPO) in the city of 2017 to date, according to Zephyr, the M&A database published by Bureau van Dijk.
While benefitting from the age of the smartphone, the first-time share sale, which would rival those by commercial lenders Guangzhou Rural and Zhongyuan Bank as shown by Zephyr, will actually finance business diversification.
The founder of Biel told the SCMP he wants capital to expand property development in Hong Kong and China, an industry with higher returns and billed as a “good bet”.
Yeung noted “phones will become valueless if they fail to attract buyers” but “value of a good location will continue to rise even if you do not develop it, and just sit on the plot of land for years”.
Growth plans also include setting up its own line of branded products, such as glasses for eye wear, as the company already has the technology on hand.
As a dominant manufacturer, Biel already makes material for smartphones, smart watches, tablets, notebooks and analogue wrist timepieces.
However, Yeung stressed he would not “go into the mobile device industry to compete with” clients, which include the powerhouses Apple and Samsung Electronics.
“Compared with the phone makers, we are very small, but we are the biggest in the glass screen industry,” he told the SCMP. “They cannot find any other one better than us.”
Biel has been around since 1986 but its business properly took off in 2003 when Motorola asked the company to make the covers of its Razr series of mobile phones.
© Zephus Ltd