BaWang, 361 Degrees IPOs target $496m
Updated: 2009-06-16 07:12
(HK Edition)
|
|||||||
HONG KONG: Two mainland consumer goods companies are seeking as much as $496 million from their Hong Kong initial public offerings as inflows into regional funds breathe life into the city's new share sale market.
BaWang International (Group) Holding Ltd, the largest herbal shampoo maker on the mainland, plans to raise as much as HK$1.67 billion ($215 million), according to a document sent to fund managers Sunday.
361 Degrees International Ltd, a Fujian-based sportswear maker and distributor, is seeking as much as HK$2.18 billion, it said in a separate document sent to investors yesterday.
Stock funds focused on Brazil, Russia, India and China attracted inflows in 13 of the last 14 weeks, taking in $1.4 billion during the period, according to a June 11 statement from Cambridge, Massachusetts-based research firm EPFR Global, which tracks funds managing $11 trillion globally.
Hong Kong's IPO market had the slowest first quarter in a decade after the financial crisis wiped out 47 percent of world stock market value last year, according to data compiled by Bloomberg. Renewed inflows into regional funds have fueled a nearly 50 percent surge in the city's Hang Seng Index in the last three months and encouraged companies to use the window to sell new shares.
Guangzhou-based BaWang, which uses action movie star Jackie Chan to promote its products, is offering 700 million new shares, or a 25 percent stake, at HK$1.95 to HK$2.38 each. 361 Degrees, the owner of the fastest-growing of the five largest domestic sportswear brands in 2008, is selling 500 million new shares at HK$3.15 to HK$4.35 each.
The IPOs of 361 Degrees and BaWang may be the city's second- and third-largest this year, after China Zhongwang Holdings Ltd's HK$9.8 billion sale in April. China Metal Recycling (Holdings) Ltd, the country's largest recycler of scrap metal by revenue last year, is also taking orders for a Hong Kong IPO of as much as HK$1.55 billion, according to a document sent to fund managers last week.
BaWang makes hair-care products under brands including BaWang and Royal Wind, according to a draft prospectus posted on the Hong Kong stock exchange's Web site.
Its BaWang brand had a 7.6 percent share of the overall mainland shampoo market in the first half of 2008, fourth behind Procter & Gamble Co's Rejoice, Head & Shoulders and Pantene brands, the prospectus said.
BaWang had a 36 percent share of the nation's herbal hair-care product market in the first half last year, a 24-percentage-point lead over the No 2 brand Kangwang, the prospectus said.
361 Degrees makes sports shoes, clothing and accessories. Its 4.2 percent share of mainland sportswear sales last year ranked it the eighth-largest brand behind international rivals Nike Inc, Adidas AG as well as domestic competitors Li Ning Co and Anta Sports Products Ltd, according to a draft prospectus posted on the Hong Kong stock exchange's Web site.
HSBC Holdings Plc and Morgan Stanley are managing the BaWang IPO. Bank of America Corp's Merrill Lynch & Co unit is arranging 361 Degrees' share sale.
BaWang's IPO is expected to be priced June 26 with trading on the Hong Kong stock exchange to start July 3, it said in an e-mail to fund managers. 361 Degrees plans to price its IPO June 23 and start trading around June 30.
Bloomberg News
(HK Edition 06/16/2009 page4)