BRIEF: Softcare jumps in trading debut in heavily oversubscribed IPO
Shares of leading African diaper seller Softcare Ltd. (2698.HK) opened 33.5% higher in their Hong Kong trading debut on Monday, and retained most of the gains to close up 31.5% at HK$34.46 by the midday break.
Softcare sold 90.88 million shares for HK$26.20 apiece to raise net proceeds of HK$2.23 billion（$286 million）. The public portion of the offering for local Hong Kong investors was 1,813 times oversubscribed, while the international tranche was 33.3 times oversubscribed.
Softcare makes and sells infant diapers, training pants and feminine hygiene products across Africa, Latin America and Central Asia.
The company plans to use 71.4% of the proceeds to expand its production capacity and upgrade production lines, while 11.6% will be used for marketing and promotion activities in Africa, Latin America and Central Asia. Another 4.7% will be used for strategic acquisitions in the hygiene products industry.
By Lau Chi Hang
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