China Paradise Electronics Retail Ltd, the country's number-three consumer electronics retailer, raised US $131.5 million after pricing its IPO near the top of an indicated range, sources close to the deal said on Monday.
China Paradise sold 455.8 million shares at HK$2.25, compared with an indicated range of HK$1.90 to HK$2.30 apiece, the sources said. It is set to make its trading debut on October 14.
That values the Shanghai-based firm at 16.3 times expected earnings of HK$0.138 for 2005. Morgan Stanley's and Cazenove are the sponsors of the offering.
Sources said the public offering portion of shares had been 130 times subscribed and the placing portion of shares to institutions was 15 time subscribed.
Gome Electrical Appliances Holding Ltd, Suning Appliance Chain Store (Group) Co Ltd and China Paradise, the country's top three electronics chain stores, had a combined market share of 8 percent in 2004.
Gome and Suning trade at 15 and 17 times earnings, respectively.
Investors have crowded into consumer-related IPOs over the past two years.
Meat producer China Yurun Food Group's, which saw heavy oversubscription for its $197 million IPO, rose 5.4 percent above its IPO price of HK$3.70 since its listing on October 3.
Privately run China Paradise, the largest electronics retailer in the prosperous Shanghai region, plans to use 62 percent of its IPO proceeds to open new stores and acquire smaller players.
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