A public offer by supply chain management services company Speed Apparel has resulted in net proceeds of about HK$37.1 million (US$4.7 million).
The company says the offer was “very significantly” oversubscribed, and the price per share was set near the midpoint of the offer price range at 50 cents.
The offer was oversubscribed by about 400 times, and share dealing on the growth enterprise market of The Stock Exchange of Hong Kong is expected to start on Wednesday, after the public holiday.
Reallocation procedures were applied because of the demand. A total of 50 million shares under the placing have been reallocated to the public offer, boosting that to 62.5 million shares, representing half of the total number of the offer shares available.
In its allocation of the net proceeds, Speed Apparel intends to apply about 13.5 per cent for strengthening and diversifying its customer base, about 26.8 per cent for expanding its product mix, about 20.2 per cent for enhancing the group’s design and development capabilities, and about 39.5 per cent for enhancing its inventory management.
“We believe the allotment result reflects the market’s recognition of the group’s business and confidence in its future prospects,” says Speed Apparel Holding chairman/CEO Chan Wing Kai.
He says the result will enable the group to further strengthen its business network, enhance its brand recognition and capture greater market share in the international fast-fashion industry.
Based in Hong Kong, the group principally sells knitwear products. It also provides one-stop apparel supply-chain management services ranging from fashion trend analysis, product design and development, sourcing and procurement of materials, production management, quality control and logistics services.
Most of the group’s products are sold to Japan as well as Australia, China, France, Hong Kong, South Africa, Taiwan and the US. For the year to the end of March, group revenue was about $435.2 million, up about 9.3 per cent, while profit amounted to about $12.5 million, an increase of about 19 per cent.
