Tongda eyes HK$256m from share placement
Tongda Group Holdings, a designer and maker of electrical and electronic appliance components, placed 400 million new shares yesterday in a bid to raise up to HK$256 million to fund expansion, market sources said.
The shares, representing 11.94 per cent of the Hong Kong-listed firm's existing share capital, were offered at 60 to 64 HK cents each, the sources said.
The price was at an 8.6 per cent to 14.3 per cent discount to the stock's price of 70 HK cents before it was suspended from trading yesterday. The stock has shot up 75 per cent over the past three months.
Tongda had an option to sell an additional 245 million shares if demand warranted which would boost the sale to HK$412.8 million, the sources said.
CLSA was the deal's arranger.
Tongda, which makes in-mould decorative products for electrical home appliances and handsets manufacturers, reported a 61 per cent jump in net profit to HK$73.3 million for the first half of last year on a turnover of HK$551 million.
Its customers include Bird, Changhong, China Mobile, China Telecom, Electrolux, Gree, Haier, Hisence, Meiling, Samsung, Sony, TCL, TPV, and Vtech.
Tongda's factories are in Shishi and Xiamen in Fujian province and Shenzhen in Guangdong province.
Earlier this month, the firm said it secured a new customer who placed an HK$80 million order for this year and promised to place orders regularly.
Tongda plans to boost its overseas sales to 40 per cent of total revenue over the next two years, from about 16 per cent last year, an executive said earlier.
It signed a letter of intent with Kaga Electronics in May last year, making the Japanese electronic trading house its sole distributor in Japan to expand market share.
