Comprehensive M&A data with integrated detailed company information

IES works on IPO
Posted on Friday, 15 March 2019 11:41
IES Technology Holdings has submitted paperwork to hold an initial public offering (IPO) in Hong Kong after the Cayman Islands-incorporated heat exchange systems and equipment supplier let an earlier application lapse.

The heavily-redacted prospectus does not disclose the size of the offering, nor the price range, but it does show proceeds will be used to construct and fit out a new factory in the Greater Bay Area.

Equipment on the shopping list ranges from pressing machines and moulds to a laser welding system and automatic rolling machine.

Money raised would also support increased research and development activities – by taking on full-time personnel and buying the necessary tools with which to design new patents and projects – and the hiring of additional sales staff.

IES also wants to upgrade its information technology system: the purchase of an advance enterprise resource planning programme should help improve the management of its business.

Dating to 1998, the group undertook one corporate reorganisation in 2014 and incorporated IES in the Cayman Islands last month to rationalise the structure further.

Heat exchangers have a range of applications in commercial, residential and industrial sectors in Macau and Hong Kong and are used to transfer thermal energy between two or more fluids or solid surface at different temperatures and in thermal contact.

In these two markets, the group was the leading hot water system supplier, with a market share of 82.3 per cent and 42.6 per cent, respectively, in 2018 by revenue.

The heat exchange systems supplier and repair and maintenance services provider generated revenue of HKD 196.20 million (USD 24.99 million) in the 12 months ended 31st December 2018 (FY 2017: HKD 173.70 million).

It had gearing of 25.9 per cent, as at 31st December 2018 (31st December 2017: 1.8 per cent; 31st December 2016: 12.5 per cent).

© Zephus Ltd