Dongshan Precision flat in Hong Kong trading debut
Shares of printed circuit board, precision component and optical module maker Suzhou Dongshan Precision Manufacturing Co. Ltd. (2384.HK; 002384.SZ) opened 5% below their IPO price in their trading debut on Wednesday, before rebounding to end the morning at HK$86.70, just below the offering price.
The company offered 114 million shares for HK$86.80 each to raise HK$9.72 billion ($1.25 billion). The retail tranche for local investors was undersubscribed, while the international placement was oversubscribed by 2.1 times. Twenty cornerstone investors bought 56.89 million shares, representing half of the total.
The company plans to use about 64.5% of the funds raised for constructing new facilities and upgrading existing production lines. Another 20% will go for potential strategic investments or acquisitions, and 5.5% will be used to pay down debt. The remaining 10% will serve as general working capital.
By Lau Chi Hang
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