SINGAPORE - 21 January 2003 - Hitchins Group Ltd ("Hitchins"), a regional integrated waterproofing and building protection solutions provider, today announced that the public tranche for its initial public offer is approximately 42.7 times subscribed, based on the 4 million shares available to the public for subscription.
As at the close of the Application List at 12 noon on 21 January 2003, there were 2,105 applications representing an aggregate of 170.78 million Offer Shares received for its 4 million shares available to the public. Subsequent announcements will be made on the total number of valid applications and the balloting ratios for these Offer Shares.
In addition to the offer tranche, the placement tranche of a minimum of 13 million shares and the reserved tranche of 3 million shares for management, Independent Directors, employees, business associates and those who have contributed to the success of the Group, have also been fully taken up.
The shares is expected to commence trading on a "when ready" basis on 23 January 2003.
"We are very encouraged by the overwhelming public response to our IPO and I would like to thank the public for their vote of confidence in Hitchins' long term potential. We are a company with strong fundamentals, with the expertise and reputation to position ourselves to tap on the opportunities available in Asia. Most of the proceeds will be used to support our expansion in China where there is tremendous growth potential, and which we believe will enhance our return to shareholders," said Mr Michael Wong, Managing Director of Hitchins Group Ltd.
The total issue of 20 million shares, comprising 18 million new shares and 2 million vendor shares, represents an estimated 18.4% of Hitchins' enlarged share capital of 108.6 million shares and the IPO was launched on 13 January 2003 at $0.20 per share. The IPO is expected to raise net proceeds of approximately $2.6 million for the Group.
The net proceeds from this IPO will be primarily used for the Group's continued growth and development as follows: