Oil maker aims to soak up $500m by Beth Ye, The Standard HK
China Corn Oil, which delisted from the Paris bourse this month, will now list in Hong Kong in an attempt to tap up to HK$500 million.
The switch comes as the mainland's largest edible corn oil producer firm tries to expand sales on its home turf - its main market.
About 99 percent of China Corn Oil's products were sold in the mainland in the first half of the year, according to chairman and chief executive Wang Mingxing.
The company plans to boost its retail business by launching its own brands, Wang said. He hopes retail sales can account for up to 50 percent of total turnover from 15 percent currently.
Wang said the proceeds from its initial public offering will also be used to raise production capacity.
The firm has seven offices covering 20 provincial capitals. Wang is now seeking to expand into second- and third-tier cities.
Output in the first half was 66,000 tonnes compared with 76,600 tonnes for the whole of last year. The firm's production last year represented 30.6 percent of the mainland's total.
Its net profit last year was 91 million yuan (HK$103.32 million), with net profit margin at about 9.8 percent.
China Corn Oil's public offer opens on December 8 and trading is due to start on December 18, sources said.
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