Comprehensive M&A data with integrated detailed company information
CPM Group to go public
Posted on Monday, 19 June 2017 10:17
CPM Group is raising HKD 215.00 million (USD 27.57 million) through an initial public offering (IPO) on the Hong Kong Stock Exchange (HKEX) to fund expansion plans.
The company has offered 250.00 million new shares, representing 25.0 per cent of its enlarged capital, to both domestic and foreign investors at up to HKD 0.86 apiece.
Active in mainland China and Hong Kong, CPM is a manufacturer of industrial and architectural paint and coating products used in a wide range of applications, including furniture painting and material surface finishing, as well as building renovation.
Managed by Innovax Securities, Sinolink Securities and Gransing Securities, the IPO is expected to close by the end of this month.
The transaction comes as the company expects the paint and coating industry to grow at compound annual growth rates of 5.7 per cent and 0.4 per cent in mainland China and Hong Kong, respectively, in the next four years.
CPM is using the proceeds mainly to set up a Xinfeng, Guangong-located plant with an annual capacity to produce 11,591 tonnes and 20,000 tonnes of solvent and water-based paint products, respectively.
The remaining amount will be used for debt repayment, acquisitions and marketing activities.
CPM posted revenue of HKD 937.45 million in the 12 months ended 31st December 2016, up 8.0 per cent on the HKD 868.00 million recorded in the previous year.
Net profit for the period totalled HKD 55.47 million, compared to HKD 41.93 million in 2015.
Kin Shing became one of the latest companies to have listed on the HKEX last week, 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.
© Zephus Ltd