Malaysian F&B Distributor Swang Chai Chuan Launches Up to $17 Million Hong Kong IPO

MT Newswires · 08/08/2022 12:49

12:47 AM EDT, 08/08/2022 (MT Newswires) -- Swang Chai Chuan (HKG:2321) launched its initial public offering in Hong Kong on Monday, ending a weeks-long dry spell in the local IPO market triggered by rising interest rates, soaring inflation and other factors.

The distributor of food and beverage products is offering 241 million shares at HK$0.52 to HK$0.56 each, a deal that could raise as much as HK$134.9 million ($17.2 million) if priced at the upper limit of the range.

Of the total shares on offer, 24.1 million are earmarked for Hong Kong investors. An overallotment option of up to 36.15 million shares can be exercised if there is strong demand for the IPO.

The Malaysia-headquartered company lined up four cornerstone investors, including Southern Alliance Mining (SGX:QNS) CEO Sri Pek Kok Sam and Nirwana founder Ng Chong Keong. They subscribed to HK$47 million worth of IPO shares.

Swang Chai expects to determine the listing price on Aug. 11 and disclose the allocations on Aug. 18. It intends to start trading on the Hong Kong bourse on Aug. 19.

Funds raised will be used to set up a new warehouse with cold storage facilities, upgrade existing warehouses, acquire logistics vehicles, develop an e-commerce business by launching a mobile app, as well as fund marketing activities.

Sunny Fortune Capital, Elstone Securities, BOCOM International, China Galaxy Securities, CMBC Securities, Haitong International and Philip Securities are the joint book-runners and lead managers of the deal.

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