Meike International Holdings Limited (HKG:0953), a China-based company that design, develop, produce, market and distribute leisure sportswear products, has announced the details about its initial public offering:
Shares for offer: 250 million new shares, including 225 million shares (90%) for international placing and 25 million shares (10%) for Hong Kong public offering. An optional 15% shares may also be offered.
Offer price: $1.20-1.43 per share
Gross proceeds: $300-357.5 million
Net proceeds: $302.2 million (assuming a median offer price of $1.32 per share)
Use of proceeds:
- $91.9 million (30.4%) for expanding production capacity, building production facilities, warehouses, staff quarters in Quanzhou, Fujian Province, buying machinery and equipment, and upgrading existing production facilities, plants and machinery;
- $92.2 million (30.5%) for expanding and optimising distribution network;
- $71.9 million (23.8%) for promotion and marketing;
- $24.2 million (8%) for enhancing research and development; and
- $22 million (7.3%) for use as general working capital.
Prospective profit: at least RMB90.6 million for 2009
Board lot size: 2,000 shares
IPO "entry fee": about $2,888.86
Offer period: January 19 to noon of January 22
Listing date: February 1
Sponsor: China Merchants Securities (HK)
