BRIEF: Newtrend launches Hong Kong IPO to raise up to $31 million
Sweetener maker Newtrend Technology Co. Ltd. (2573.HK) launched its Hong Kong IPO on Friday, aiming to raise up to HK$222 million ($31 million) through the sale of 10.6 million shares priced at up to HK$20.90 per share. Final pricing of the deal is set for June 6, with the shares scheduled to make their trading debut on June 10.
Newtrend isone of China’s biggest makers of popular sugar substitutes including glycine and sucralose and sells mostly to customers in the U.S. and Europe from manufacturing sites in Thailand and Indonesia. Its revenue hit 761.5 million yuan ($106 million) in 2022, before an oversupply-induced price drop in glycine and sucralose caused its sales to plunge more than 40% to 446.9 million yuan in 2023. Its revenue bounced back somewhat last year to 568.9 million yuan.
The company’s profit fell to 43 million yuan last year from 45 million yuan in 2023, after tumbling from 122 million in 2022.
By Doug Young
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