Key Takeaways:
- Lung Fung Group offers 125 million shares at HKD 5.18 to HKD 6.38 apiece
- Net proceeds estimated at HKD 607 million based on mid-point pricing
- Trading debut set for June 5 on Hong Kong's Main Board
Back
Lung Fung Group sets IPO price range at HKD 5.18 to HKD 6.38 per share
Hong Kong pharmacy chain Lung Fung Group (02290.HK) will open its initial public offering tomorrow, seeking to raise as much as HKD 797.5 million at an offer price of HKD 5.18 to HKD 6.38 per share.
"The listing will strengthen our capital base for expansion," the company said in its prospectus filing, without naming specific expansion plans.
The company plans to offer 125 million shares globally, with 10 percent allocated to the Hong Kong public offering and 90 percent to the international offering. Based on the mid-point offer price of HKD 5.78, net proceeds are estimated at approximately HKD 607 million. Each board lot comprises 500 shares, requiring a minimum entry fee of HKD 3,222.17.
The pricing gives the local pharmacy chain a valuation that will be tested against listed peers when trading begins. Shares are expected to debut on the Main Board of the Stock Exchange of Hong Kong next Friday, June 5. The public offering closes at 12:00 noon on Tuesday, June 2. Cornerstone investor details and oversubscription ratios have not yet been disclosed.
The listing proceeds will provide Lung Fung Group with capital to expand its retail pharmacy network in Hong Kong. Investors will watch first-day trading on June 5 for an early signal of institutional and retail demand for the stock.
This article is for informational purposes only and does not constitute investment advice.
