China Harmony Auto unveils IPO in Hong Kong

The Asset 31 May 2013
China Harmony Auto Holding, a car dealership headquartered in China’s central Henan province that specializes in the sales and after-sales service of luxury and ultra-luxury passenger vehicles, launched its global initial public offering in Hong Kong on May 31.
The company is offering up to 275.126 million shares, including 27.513 million Hong Kong offer shares and 247.613 million international offer shares. The offer price ranges from HK$6.08 (78 US cents) to HK$8.88 per share, representing a P/E ratio of 8.25x to 12x, according to company CFO Fong Heung Sang in a video press conference in Hong Kong on May 30.
Net proceeds from the offering are expected at HK$1.88 billion by mid-point calculation. About 60% of the amount will be used for capital expenditures for the opening of new outlets, 20% for acquisitions, 10% for updates of existing outlets and the remaining 10% as working capital and for other general corporate purposes.
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