China Hu An Cable IPO

Interesting? More study needed. Considering the company "China Hu An Cable Holdings" had made its intention to list here known quite some time ago. Well about 1 month ago, to be rather specific.

But the timing of the IPO launch is quite gloomy, I'd say. Let's just take a look at the recent Tiger Airways IPO. Today it's closed at $1.46 (down from the IPO offer price of $1.50 & its first day trading's closing price of $1.58).

So very likely I'll give this counter a miss. (And still considering Sin Heng Heavy Machinery IPO, instead.)

China Hu An Cable Holdings has applied to list on the Singapore Exchange Securities Trading Mainboard.

The China-based integrated wire and cable manufacturer lodged its preliminary prospectus with the Monetary Authority of Singapore on Thursday.

In the document, the firm said it intends to channel S$28 million of the net proceeds from the listing and/or bank borrowings to the construction of new workshops, production lines and acquisition of new production machinery.

These expansion plans are expected to commence six months after listing.

Another S$1 million from the net proceeds will be used to strengthen its research and development capabilities in order to broaden its product range.

China Hu An Cable said its order book stands at about RMB173 million of unfulfilled secured contracts, which it expects to deliver in the next six months.

From Channel NewsAsia, "China Hu An Cable applies to list on SGX Mainboard". (31/12/09)
CHINA Hu An Cable Holdings Ltd, an integrated wire and cable manufacturer, has launched its initial public offering (IPO) for a Singapore Exchange mainboard listing.

The China-based company's offering comprises 118 million new shares and 58 million vendor shares, of which five million are public-offer shares and 171 million placement shares. Each share is priced at 42 cents. The offer opens today and closes on Feb 4. Trading of the shares is expected to begin on Feb 8.

The company aims to raise about $44.6 million in net proceeds to help expand and enhance its manufacturing facilities to better cater to the high-end cable market.

CIMB Bank, Singapore branch, is the manager and CIMB-GK Securities Pte Ltd is the underwriter and placement agent.

According to executive chairman and chief executive officer Dai Zhi Xiang, the IPO will place Hu An Cable in closer access to international markets, and allow it to better tap growing demand from sustained infrastructure spending, nationwide power infrastructure upgrades, and niche but promising sectors such as the mining and ship-building industries.

The company said it has developed a strong brand reputation in its 11 years of establishment. It is situated in the wire and cable hub of Yixing in Jiangsu Province and is said to have a strong focus on research and development.

Hu An Cable is supplier to companies such as State Grid Corporation of China and China Huadian Group. It has also participated in state projects such as the Beijing Workers' Stadium for the 2008 Beijing Olympic Games.

For the nine months ended Sept 30, 2009, the group recorded 103 million yuan (S$21 million) in net profit on revenue of 943.5 million yuan.

From Business Times, "China Hu An Cable launches mainboard IPO". (29/01/10)

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