BRIEF: MeiG largely flat in Hong Kong trading debut
Shares of wireless communication modules and solutions provider MeiG Smart Technology Co. Ltd. (3268.HK) opened up slightly in their Hong Kong trading debut on Tuesday, then traded within a narrow range to close up 0.6% at HK$29.04 by the midday break.
The company sold 40.25 million shares for HK$28.86 each to raise about HK$1.09 billion ($139.7 million). The Hong Kong portion of the offering for local investors was more than 173 times oversubscribed, while the international offering was more than 3.5 times oversubscribed. Eight cornerstone investors purchased 39.47% of the shares being sold.
The company will use 55% of the proceeds for enhanced R&D, 10% to expand its overseas sales and promotional networks, 10% for strategic investments and acquisitions, 15% to repay bank borrowings, and the remaining 10% for working capital.
By Lau Chi Hang
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