The group is offering 39,000,000 shares at the range of HK$1.36 to HK$1.56 per share via its management team with an average of over 20 years industry experience.
China Print Power Group Limited (“Print Power”), a company listed on SGX-ST and principally engaged in printing books and manufacturing specialised products, on Wednesday announced the details of the proposed dual primary listing on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”).
Print Power intends to offer 39,000,000 shares (comprising 30,000,000 new shares and 9,000,000 vendor shares, collectively referred to as the “Offer Shares”), subject to re-allocation, 90% of which will be offered under the Placing (comprising 26,100,000 new shares and 9,000,000 vendor shares), while the remaining 10% (i.e. 3,900,000 new shares) will be offered to the public as part of the Public Offer in Hong Kong (“Public Offer”). The Offered Shares will be priced at a range of HK$1.36 to HK$1.56 per share. Assuming the offer price is HK$1.46 per share (being the mid-point of the offer price range), net proceeds from the issue of new shares under placing and public offering will be approximately HK$31.1 million.
The public offer in Hong Kong begins on 28 June 2011 and end at noon on 4 July 2011 (Monday). The final offer price and the allotment results will be announced on 11 July 2011 (Monday). Dealing in the offered shares of Print Power is expected to commence on the Main Board of SEHK on 12 July 2011 under the stock code 6828. Shares will be traded in board lots of 2,000 shares. Yuanta Securities (Hong Kong) Company Limited and VC Capital Limited are the Joint Sponsors and VC Brokerage Limited is the Sole Bookrunner and Lead Manager of the listing.
The Group is principally engaged in printing books and manufacturing specialised products, providing a full suite of services including pre-printing (including colour separation and creating ozalids), printing and post-printing services (including folding, collating, finishing and binding). Examples of the Group’s book products include medical reference books, children’s story and activity books. The Group also engages in the production of specialised products, including custom-made and value-added printing products such as pop-up children’s books, board books, greeting cards, post cards, journals, calendars, diaries, paper bags, stationery, puzzles, photo albums, as well as leather and fabric products such as organisers with leather or fabric covers, packaging gift boxes, desktop stationery sets, leather-bound journals and diaries, and products with materials other than paper.
Serving and building solid and stable client relationships with international publishers, book traders and retail stores, the Group has a diverse international customer base covering Europe, North America and Asia. Most of its major customers have been working with the Group since 2002. In addition, the Group has been steadily expanding to a more diverse and sustainable customer base over the past three years and has secured major purchase orders with international clients from the US, UK, France and Germany.
Mr. Sze Chun Lee, CEO and Executive Director of Print Power, said, "Over the years, the Group has been devoted to expanding its customer base by use of cost efficiency, competitive pricing, high resiliency and advanced technology to provide high quality and efficient services to respond to different customer needs. We strongly believe that the steady rise in our customer base is the result of our good efforts."
As early as 2000, the Group began to engage in the production of special products and initiated its book printing business in 2001. To further tap into the PRC market, the Group obtained a printing licence issued by the Guangdong Press and Publication Administration with a permitted scope of the printing of packaging of decorative printing products. With such a printing license, the Group is allowed to manufacture and distribute non-publication specialised products in the PRC. In terms of capacity, the Group has a total of twelve printing presses, one automatic casing-in binding machine and two sets of CTP equipment at a cost of approximately HK$4.5 million. CTP equipment improves the Group’s response time and hence saves costs by bypassing the intermediate step of making films that are necessary in traditional printing methods. The automatic casing-in binding machine on the other hand provides a comprehensive one-stop hard case binding services. It not only improves the Group's product quality and production efficiency, but also increases the degree of flexibility to serve the order needs from existing customers and new customers.
Located in the He Yuan High Technology Development Zone, He Yuan City, Guangdong Province, PRC, the Group’s He Yuan facility possesses a site area of approximately 104,349 sq.m.. The first phase construction of the production facility at He Yuan was completed in 2006 with a built-up area of approximately 50,080 sq.m.. In the future, the Group plans to construct two new four-storey workshops with a GFA of approximately 20,000 sq.m. in order to expand the production capacity to cope with the anticipated growth. The construction is expected to be completed in early 2012. With the He Yuan facility, the Group maintains its competitiveness and benefits from lower labour and utility costs in the region.
"We are optimistic about the industry prospects. The PRC sales revenue of the specialized products has amounted to about HK$500,000. With the sustained economic growth, rising average disposable incomes and higher living standards, we believe that high-end specialised products have tremendous potential in the PRC market. Therefore, the Group will leverage its dedicated strength in printing and production expertise and experience in specialised products to identify potential customers, and strive to seek new business opportunities," Mr. Sze concluded.
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