Nutritional products maker targets healthy $1.1b by Beth Ye, The Standard HK
Mainland health-food provider Ruinian International may raise as much as HK$1.13 billion from its initial public offering to strengthen its position as the largest supplier of amino acid-based nutritional products.
The company plans to issue 300 million shares at HK$2.95 to HK$3.78 apiece - 90 percent for its institutional tranche and 10 percent for retail investors. The offering comprises 250 million new shares and 50 million existing shares sold by shareholders. The minimum entry fee is HK$3,818.14 for a board lot of 1,000 shares.
CK Life Sciences International (Holdings), a biotechnology firm controlled by tycoon Li Ka-shing that originally invested HK$150 million in Ruinian in 2007, will sell 17.22 million shares. After the share sale and offering, CK Life's stake will be reduced to 9.32 percent.
Ruinian had an average annual turnover growth of 79.3 percent between 2006 and 2008. Chief financial officer Philip Poon Yick- pang said net profit last year is estimated to have grown 6.3 percent to about 200 million yuan (HK$227.6 million).
Templeton Emerging Markets Group has acquired a 5.03 percent stake in Ruinian.
It mostly produces nutritional and pharmaceutical items and has the largest market share - 21.6 percent - of amino aid-based products in the mainland. Its public offering starts today and will close on Thursday. Its stock market debut is set for February 19.
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