Targets to raise up to HK$80mn as it places 80mn shares at between HK$0.60 and HK$1.00 per share.

Gayety Holdings Limited (“Gayety”), a local multi-branded Chinese restaurant group offering specialised menus and catering for large-scale wedding banquets and events, has announced details of its proposed listing on the Growth Enterprise Management (GEM) Board of The Stock Exchange of Hong Kong Limited (“HKEx”) on 30 June 2011.

The Group plans to place a total of 80,000,000 new shares, representing 25% of the Group’s enlarged issued share capital, at an indicative placing price of HK$0.60 to HK$1.00 per share. The net proceeds from the offer are expected to be approximately HK$30.9 million to HK$62.1 million after deducting underwriting fees and the estimated expenses relating to the placing. Market capitalisation of the shares would be between HK$192 million and HK$320 million, according to a Gayety report.

The allotment result will be announced on 7 July (Thursday). Trading of the shares of Gayety will begin on 8 July (Friday) in board lots of 4,000 shares under the stock code of 8179 on HKEx. Quam Capital Limited is the sole sponsor of the listing. Quam Securities Company Limited is the bookrunner and lead manager of the placing.

Mr Wong Kwan Mo, Chairman of Gayety, said, “The Group adheres to the business philosophy of providing a value-for-money dining experience with fresh ingredients, professional customer service, specially prepared menus and an enjoyable dining environment, and has been widely recognized and appreciated by customers and the public over the years. Although we have been established for just over five years, we have grown rapidly in the local market with five restaurants currently in operation. Capitalising on our precise marketing strategy and our restaurant network expansion plan, we believe that the listing will boost our development and the returns for our shareholders”.

Mr Wong concluded, “To capture the immense opportunities arising from the increasing demand from local diners for special menus and dining services for large-scale events, our strategy is to open two restaurants with different brands in the coming two years. We also are exploring expanding our scope of business, including extending the dining business to Mainland China and evaluating prospects in other food-related businesses. With our experienced management team, comprehensive management system and detailed development plans, we will continue to adhere to our operating philosophy of offering value-for-money menus and services and realise our brand advantage to expand our market share and create economies of scale".