As demand for its new product line continues to surge, Chinese health supplements and skincare products company Tycoon Group Holdings is moving forward with its plans to launch its initial public offering (IPO) in Hong Kong. The company is banking on its newly added anti-epidemic product line to boost interest in its stocks following the debut.
According to a statement released by the company on Monday, its listing in Hong Kong will involve the selling of 192.4 million shares globally until April 3. Out of the shares that will be listing, 19.2 million will be sold to local investors in Hong Kong, while 173 million shares will be offered to international buyers. The shares will be priced at a range of HK$1.48 to HK$1.52 per share.
The company is aiming to raise up to HK$230.3 million net of listing expenses. The goal is achievable if the company manages to sell its shares at the mid-price of HK$1.50 per share. Official trading of the stock on the Hong Kong Stock Exchange will commence on April 15 under the stock code 3390.
Tycoon Group plans to use the proceeds of the IPO to fund the further development of its supply chain and retail management system. Part of the funds will also be used to market its more than 120 brands in markets such as China and Singapore. The rest will be used to pay debts and add to the company's working capital.
Following the start of the viral outbreak earlier in the year, Tycoon Group began producing and distributing in-demand medical items such as cleaning wipes, thermometers, surgical masks, and hand sanitizers. The company stated that it was forced to broaden its product selection to adapt to consumer needs.
Apart from Tycoon Group, a host of other Chinese companies had shifted their production to making essential medical suppliers needed by frontline personnel during the outbreak. Companies such as Foxconn, Sinopec, and BYD all pitched in to help alleviate the shortage of essential medical supplies.
Some listed companies, who had transitioned into making and distributing the medical supplies on a full-time basis, had experienced an uptick in investments over the past months. Hong Kong-listed company Ta Yang Group saw its shares surge by 12 percent after it announced that it would be producing masks after it landed a contract in Beijing. Tycoon Group is hoping for the same boost during its IPO despite the ongoing slump in the city's equities market.
