Security firm surges 78 pc on debutBusiness | Avery Chen 23 Oct 2019
Shares of security services provider IWS Group (8441), backed by Hong Kong's "King of the Minibus" Ma Ah-muk, surged by 78.13 percent to HK$0.57 with a market turnover of HK$182 million on its debut in the growth enterprise market yesterday.
IWS is the property investment veteran's first listed company. The initial public offering raised HK$32 million after receiving 40.56 times over-subscription in the retail tranche.
The company is the largest public security services provider in Hong Kong, representing about 18.5 percent of the market in terms of revenue in 2018, said IWS' prospectus, citing a Frost & Sullivan report.
IWS has secured contracts from the MTR Corporation (0066) for security services at railway stations along 13 lines for nine consecutive years and won a three-year Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) contract in April last year. It provides security services at 10 sea, land and railway immigration control points out of a total of 14 posts in the city.
The company's revenue rose 1.26 times year-on-year to HK$295.17 million for the year ended March 31, mainly due to the XRL contract.
Revenue generated from MTRC accounted for 55.1 percent of total revenue for the year ended March 31. Revenue from XRL contracts with MTRC represented 46.7 percent of total revenue.
MTRC, the operator of Hong Kong's world-class subway, is suffering repeated attacks amid months-long political protests that has turned more violent, and it is hiring more security guards to maintain order.
IWS refused to answer questions about whether the situation has boosted its income and how the company deals with disputes between anti-government protesters and police.
IWS had 1,614 full-time and 431 casual security guards by March 31.
Meanwhile, Changsha Broad Homes Industrial will launch a Hong Kong IPO tomorrow, aiming to raise up to HK$1.52 billion.
The Hunan-based company will offer 122 million H-shares at an indicative price range from HK$9.68 to HK$12.48. The minimum investment will be HK$3,781.73 per board lot of 300 shares. It plans to sell shares on the main board on November 6.
In other IPO action, Beng Soon Machinery, a demolition services provider in Singapore, launched its IPO yesterday to raise as much as HK$175 million.
The company is issuing 250 million shares in a targeted price range of HK$0.5 to HK$0.7, with a minimum investment of HK$2,828.22 per 4,000 shares. It plans to start trading on the main board on November 8.
Shares of Snack Empire (1843), a Singapore-based food and beverage group, jumped 86.15 percent to HK$1.21 in the Bright Smart gray market before its debut last night.