BRIEF: Zhaowei rises in trading debut after heavy oversubscription
Shares of integrated micro transmission and drive systems maker Shenzhen Zhaowei Machinery & Electronics Co. Ltd. (2692.HK) open up 9.4% in their Hong Kong trading debut on Monday, but later gave back most of the gains to close up 3% at HK$73.50 by the midday break.
The company sold 26.75 million shares for HK$71.28 each to raise about HK$1.83 billion ($235 million). The Hong Kong portion of the offering for local investors was more than 1,536 times oversubscribed, while the international offering was more than 12 times oversubscribed. Twenty-one cornerstone investors purchased 34.2% of the shares being sold.
The company will use 35% of the proceeds for R&D and expansion of its product portfolio, 30% to expand its global production capacity, 15% for strategic alliances, investments and acquisitions, 10% for expanding its global service and sales network. The remaining 10% is earmarked for working capital.
By Lau Chi Hang
To subscribe to Bamboo Works weekly free newsletter, click here
This story has been corrected to show that Zhaowei’s shares rose in their trading debut
