Shares of Taiwan-based Stella International Holdings Ltd (九興控股), a shoe supplier for brands such as Givenchy, climbed on its first trading day in Hong Kong after the stock was priced at the top end of the range.
The stock closed HK$2.94, or 19 percent, higher at HK$18.44 yesterday. Stella's initial public offering raised HK$3.02 billion (US$387 million) by pricing 195 million shares, a 25 percent stake, at HK$15.50 each, valuing the company at US$1.5 billion. International institutions sought 25 times the shares available to them.
"We're excited, but today is just a starting point," chairman Jimmy Chen (
Chen said Stella, which was founded in 1982, was in talks to acquire two companies that sell brand-name men's and women's shoes internationally.
He declined to name the acquisition targets.
Stella's revenue jumped 16.5 percent to US$779.3 million over the past 12 months, while profit rose 7 percent to US$91.4 million. North America accounted for 62.3 percent of Stella's revenue last year and Europe 28.4 percent. Sales in China and Hong Kong contributed 2.9 percent.
Another Taiwan-based company also saw shares rise on its Hong Kong debut on Friday.
Shares of Delta Networks Inc (達創科技), a maker of communications equipment for customers including Alcatel Lucent and Nortel Networks Corp, surged on their first day of trading in Hong Kong after the company said production capacity may double in five years.
The stock rose 20.9 percent to HK$5.44 at the close of trading, after climbing as much as 33 percent earlier. The company and its shareholders raised about HK$1.4 billion selling shares at HK$4.50 each, the top end of an indicative range.
Taipei-headquartered Delta Networks, which makes products such as ethernet and broadband Internet switches, will invest about US$50 million in the next five years in a new factory in Wujiang, eastern China, which will double production capacity, company president Victor Cheng (
The company has factories in Taoyuan, Taiwan, and Dongguan, southern China.
Delta Networks, a unit of Taipei-listed Delta Electronics Inc (
The company will also use about HK$393 million from its listing proceeds to seek acquisitions, the document said.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to