Xinyi Glass plans US$102.6m HK IPO

Date: 13 January 2005
Source: Xinhuanet.com

Date: 13 January 2005

Xinyi Glass Holdings Ltd., China’s largest exporter of auto glass by volume, planned a Hong Kong initial public offering worth HK$600-HK$800 million (US$77-US$102.6 million), sources familiar with the situation said.

The company, which began marketing for its IPO this week, would be among the first to list in Hong Kong in 2005 following a robust 2004, in which new issues were driven by debutants from fast-growing China. PricewaterhouseCoopers expects Hong Kong’s IPO haul to rise a further 45 percent this year to a record US$17.7 billion.

Xinyi chief executive Gerry Tung, speaking to reporters during a plant tour, confirmed that the company planned an IPO but declined to provide details on the deal’s size or timing.

Proceeds would be used to help fund expansion of its plant in Dongguan, Tung said. The Hong Kong-based company’s Web site says the expansion will cost a total of 2.5 billion yuan.

The listing, sponsored by Kingsway SW Securities Ltd. and DBS Vickers Securities, is expected to be completed by Feb. 9.

For the first eight months of 2004, Xinyi’s sales totaled HK$600 million, a 20 percent year-on-year increase. Net profit for the first eight months was HK$150-HK$160 million, a more than 40 percent rise.

For the full year, it expected to have earned a net profit of HK$230 million, the source said.

About 75 percent of the company’s sales are for automotive glass, mostly in the after-market segment. Much of the remainder is for sales for use in construction.

Zhejiang Glass Co. said last week that it would issue 280 million A shares to institutional and public investors in China, raising 1.5 billion yuan (US$181.2 million).

600450 Xinyi Glass plans US$102.6m HK IPO glassonweb.com

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