Oi Wah Pawnshop Credit Holdings, the largest pawn loan service provider in Hong Kong, plans to list on the Mainboard of The Stock Exchange of Hong Kong.
A total of 100 million shares will be offered under the ‘share offer’, of which 90 per cent, will be offered by way of ‘placing’. The remaining 10 per cent ‘offer shares’, will be offered under the ‘Hong Kong Public Offer’. The offer price per offer share is expected to be not less than HK$0.75 and not more than HK$0.98.
The Hong Kong Public Offer will commence on February 27 and close on March 4 2013. The final offer price and allotment results are expected to be announced on March 11.
Assuming an offer price of HK$0.87 per offer share, being the mid-point of the indicative offer price range of HK$0.75 to HK$0.98 per offer share, the net proceeds from the share offer will be approximately HK$64.5 million.
Oi Wah intends to apply approximately 60 per cent of that to expanding its mortgage loan portfolio and broadening its customer base; approximately 28 per cent in expanding its pawn loan portfolio and establishing a new customer service centre; approximately 10 per cent in general working capital; and the remaining two per cent into marketing activities.
After establishing its first pawnshop in 1975, Oi Wah has 12 stores located in Hong Kong. The company diversified into mortgage loans in 2009. It has established a mortgage centre in its head office in Wanchai to provide private and personalised one-on-one mortgage loan services to its customers. As a money lender, Oi Wah provides flexibility to borrowers with shorter approval time, which is strongly preferred by SMEs and individuals who has short-term financing needs and cannot obtain loans from banks.
“Lengthy and complicated credit approval process among local banks has created opportunities for financing service providers. Oi Wah, being the largest player in pawn loan industry in Hong Kong, is believed to benefit from this,” said Edward Chan, chairman and CEO of Oi Wah.
“Looking forward, we strive to leverage on our market position in the pawn loan industry and to further develop our mortgage loan business,” he said.
