Tai Hing has appetite for $1b in IPO

Business | Avery Chen 22 May 2019

Casual restaurant chain Tai Hing Group passed a hearing yesterday and plans to launch an initial public offering as early as next Thursday to raise up to HK$1 billion.

Tai Hing Group, which operates eight restaurant brands including Tai Hing, TeaWood, and Trusty Congee King in Hong Kong, expects to start trading on the main board on June 13, becoming the biggest IPO among local companies in recent years.

The IPO sole sponsor is Bocom International (3329).

Tai Hing Group has 191 restaurants in Hong Kong, 63 in the mainland, one in Macau and one in Taiwan.

Its revenue rose 12.8 percent year-on-year to HK$3.13 billion in 2018. Its flagship brand, Tai Hing, accounted for 64.7 percent of revenue, followed by TeaWood, which contributed 17.8 percent.

The company's net profit rose 45.47 percent year-on-year to HK$304.9 million last year while the net profit margin climbed 2.2 percentage points to 9.8 percent in 2018.

However, the company expects that its net profit for 2019 may be lower than last year, primarily due to the absence of a gain on disposal of non-current assets which made HK$162.6 million in 2018.

Meanwhile, Medialink (2230), a third-party-owned media content distributor, slumped 31.1 percent to 31 HK cents on its first trading day yesterday.

Chairwoman Lovinia Chiu Siu-yin said online media is not much affected by the Sino-US trade war and economic slowdown.

Chief operating officer Cheung Wai-kit said the company is considering developing its educational cartoon and global business, especially in Southeast Asia.

Elsewhere, Xinyi Energy has raised HK$3.65 billion from a Hong Kong IPO after pricing it near the bottom of the indicative price range, according to Reuters IFR.

In other news, China will allow insurance companies to invest in Shanghai's new technology board by placing new shares, secondary public offerings and exchange trading, mainland media reported.

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