Tuesday, July 23, 2019
 
Columnist
Martin Hennecke

Solar, menswear firms test IPO waters
 
15/05/2019
 
<p>Xinyi Energy, a spinoff of Xinyi Solar (0968), relaunches a Hong Kong initial public offering today to raise up to HK$4.42 billion after postponing amid a broad equity selloff last December.</p><p>The mainland solar farms owner and operator is offering 1.88 billion shares at an indicative price range of HK$1.89 to HK$2.35. The minimum investment is HK$4,747.36.</p><p>The Anhui-based company has attracted two cornerstone investors who will subscribe to a total HK$890 million worth of shares. Law Kar-po, chairman of Singapore-based Park Hotel Group and the son of Bossini International (0592) founder Law Ting-pong, agreed to subscribe 265 million shares for HK$500 million. Ma Jianrong, chairman of blue-chips Shenzhou International (2313), will buy 206 million shares for HK$390 million.</p><p>Chief executive Tung Fong-ngai said the company is confident about the investor response, supported by senior investors and the increasing market&#39;s need for stable returns. He said Xinyi Energy defines itself as a utility and dividend paying stock. The company will adopt high dividend policy in the future and the total amount of dividends will account for over 90 percent of its distributable income, Tung said.</p><p>It plans to start trading on the main board on May 28.</p><p>Also today, Chinese menswear firm Mulsanne Group, backed by luxury goods giant LVMH Moet Hennessy Louis Vuitton SE, launches an IPO aiming to raise as much as HK$1.18 billion, with the minimum investment of HK$2,969.63.</p><p>The Ningbo-based company, which owns menswear brand GXG, is offering 200 million shares at a targeted price range of HK$4.68 to HK$5.88. It sets to debut on May 27.</p><p>Mulsanne intends to use 45 percent of its net proceeds to repay debt and reduce its financial expenses. About 15 percent will be used to pursue brand acquisitions or strategic alliances, 10 percent for upgrading offline retail stores to smart stores, 20 percent for establishing an advanced smart logistics center and 10 percent for working capital and other general corporate purposes.</p><p>In other news, Frontage Holdings plans to start bookbuilding today for a Hong Kong IPO of up to about US$200 million.</p><p>Also, ESR Cayman began pre-marketing yesterday for an up to US$1.5 billion Hong Kong IPO.</p>

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