(MENAFNEditorial) HONG KONG, June 28, 2016-(ACN Newswire)-Xinyi Automobile Glass Hong Kong Enterprises Limited ("Xinyi Hong Kong" or together with its subsidiaries, the "Group"), one of the largest vehicle glass repairs and replacement service providers in Hong Kong, today announced the details of its proposed listing on the Growth Enterprise Market ("GEM") of The Stock Exchange of Hong Kong Limited ("SEHK").
Background Information and Offering Details
Prior to the proposed listing, Xinyi Hong Kong is a wholly-owned subsidiary of Xinyi Glass Holdings Limited (00868.HK; "Xinyi Glass"). Pursuant to the listing plan, all shares of Xinyi Hong Kong will be distributed to the shareholders of Xinyi Glass on a pro rata basis, for one share of Xinyi Hong Kong for eight shares of Xinyi Glass. In addition, Xinyi Hong Kong plans to offer a total of 55,000,000 shares under the Hong Kong Public Offering, representing 10.18% of the enlarged number of shares in issue following completion of the spin-off and the listing. The Hong Kong Public Offering will begin on 28 June 2016 (Tuesday), and will end at noon on 4 July 2016 (Monday). The indicative offer price range is set between HK$0.55 and HK$0.70 per share. The final offer price and allotment results will be announced on 8 July 2016 (Friday). Dealing of the shares is expected to commence on GEM on 11 July 2016 (Monday) under the stock code 8328. The shares will be traded in board lots of 4,000 shares. After deduction of the estimated underwriting fees and other related expenses and assuming an offer price of HK$0.625, being the mid-point of the indicative offer price range, the net proceeds from Hong Kong Public Offering are estimated to be HK$28.0 million.
RHB Capital Hong Kong Limited is the Sole Sponsor and RHB Securities Hong Kong Limited is the Sole Lead Manager of the listing.
Company Background
With the business commenced in 1996, Xinyi Hong Kong is now the second largest vehicle glass repairs and replacement service provider in Hong Kong in terms of revenue in 2015, with a market share of 19.7%. The Group now has four service centres and 19 motorcade service teams. Its customers included corporate customers, such as garages, car dealers, car rental companies, coach and bus companies and public service organisations and government departments; individual customers not insured under motor vehicle insurance policies; and insurance companies which the Group has entered into cooperation arrangements for the provision of vehicle glass repairs and replacement services for the insured car owners.
Investment Highlights
With well-recognised reputation and long operating history, Xinyi Hong Kong has grown into one of the most established aftermarket vehicle glass repairs and replacement service providers in Hong Kong and developed solid business relationships with its corporate customers and insurance companies. Leading by the experienced management team and well-trained technicians, Xinyi Hong Kong procures a wide range of vehicle glass of different brands and models which allows it to cater for the different needs and requirements of customers. It also established a strategic service network, enabling it to serve its customers in different parts of the territory. More significantly, being well aware of the importance of product quality and service quality to the business, the Group imposes stringent quality control policies in the procurement of vehicle glass and the provision of repairs and replacement services. In addition to building a team of quality management, the Group also strives to ensure the vehicle glass procured from its suppliers comply with both international and local standards.
Future strategies
In view of the expected increase in the number of motor vehicles in Hong Kong and the Group''s cooperation with an increasing number of insurance companies, Xinyi Hong Kong plans to enhance its service capacity by expanding its existing service centres, setting up a new service centre and enhancing its motorcade service teams. In addition, with a strong commitment to improve the service quality and generate more business opportunities, the Group will leverage the development of mobile apps and online facility to enable online service requests and payments for its vehicle glass repairs and replacement services. Besides, it also plans to enhance its brand by promoting its reputation on the provision of high quality services.
To capture the immense opportunities in the motor vehicle insurance market in Hong Kong, the Group intends to strengthen the relationship with insurance companies, and continue to explore the potential cooperation opportunities with insurance companies in order to broaden its customer base. Furthermore, it intends to explore mergers and acquisitions and investment opportunities in vehicle glass repairs and replacement business and other business areas, so as to further strengthen its service network and increase its market share. With the further expansion of the breadth and depth of its business, Xinyi Hong Kong is believed to maintain its leading position in the industry.
Use of Proceeds
Usage / Approximate
Expansion of service capacity: 89.6%
Improvement in customer service facilities: 3.9%
Sales and marketing: 4.3%
General working capital: 2.2%
Where to collect the Application Forms and Prospectus
A White Application Form and a prospectus can be collected during normal business hours from 9:00 a.m. on 28 June 2016 (Tuesday) until 12:00 noon on 4 July 2016 (Monday) from:
(a) The following address of the Underwriters:
RHB Securities Hong Kong Limited at 12th Floor, World-Wide House, 19 Des Voeux Road Central, Hong Kong; or
Gransing Securities Co., Limited at 805-6, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong; or
Kingsway Financial Services Group Limited at 7/F, Tower One, Lippo Centre, 89 Queensway, Hong Kong; or
(b) The following branches of DBS Bank (Hong Kong) Limited:
District / Branch / Approximate
Hong Kong Island / United Centre Bank / Shops 1015-1018, 1/F & Shops 2032-2034, 2/F, United Centre, 95 Queensway, Admiralty
Kowloon / Tsimshatsui Branch / G/F, 22-24 Cameron Road, Tsim Sha Tsui
New Territories / Shatin Plaza Branch / Shop 47 & 48, Level 1, Shatin Plaza, No. 21-27 Sha Tin Centre Street, Shatin
A Yellow Application Form and a prospectus can be collected during normal business hours from 9:00 a.m. on 28 June 2016 (Tuesday) until 12:00 noon on 4 July 2016 (Monday) from the Depository Counter of HKSCC at 1/F, One & Two Exchange Square, 8 Connaught Place, Central, Hong Kong or from stockbroker.
About Xinyi Automobile Glass Hong Kong Enterprises Limited
Xinyi Automobile Glass Hong Kong Enterprises Limited, which commenced business in 1996, is one of the largest vehicle glass repairs and replacement service providers in Hong Kong. The Group has an extensive customer base, which included corporate customers, individual customers not insured under motor vehicle insurance policies and insurance companies which the Group has entered into cooperation arrangements for the provision of vehicle glass repairs and replacement services for the insured car owners. Xinyi Hong Kong has established a strategic service network, comprising four service centres and 19 motorcade service teams.
For more information
Strategic Financial Relations Limited
Joanne Lam Tel: + 852 2864 4816 Email: [email protected]/* */
Karen Tang Tel: + 852 2114 4951 Email: [email protected]/* */
Hawaii He Tel: + 852 2864 4847 Email: [email protected]/* */
Fax: +852 2527 1196 / 2111 9030
Website: http://www.sprg.com.hk
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