HONG KONG — Bortex Global Limited (“Bortex”) (the “Group”), a developing manufacturer and exporter of LED lighting products. The details of its proposed listing of its shares (the “Listing”) on the Growth Enterprise Market (“GEM”) of The Stock Exchange of Hong Kong Limited (“SEHK”) are as follows: .
Details of the Offer
The Group intends to issue a total of 200,000,000 Shares (subject to the Adjustment Options), of which 180,000,000 Shares (subject to reallocation and the Adjustment Options) are for Placing; and 20,000,000 Shares (subject to reallocation) are for Public Offer (collectively the “Share Offer”). The indicative Offer Price ranges from HK$0.3 to HK$0.5 per Share. After deducting related underwriting fees and listing expenses and assuming the Adjustment Options are not exercised at all and the Offer Price is fixed at HK$0.4 (being the mid-point of the indicative Offer Price range), the net proceeds of the Share Offer are estimated to be approximately HK$48.9 million.
The Public Offer commenced from 9:00 am yesterday (31 October 2017) and will end at 12:00 noon on 3 November 2017 (Friday). The final Offer Price and allotment results are expected to be announced on 15 November 2017 (Wednesday). Dealing of Shares is expected to commence on the GEM of SEHK on 16 November 2017 (Thursday) under the stock code 8118. The Shares are to be traded in board lots of 8,000 Shares. Ample Capital Limited is the Sponsor of the Listing.
Investment Highlights and Future Strategies
The Group’s major customers have an extensive coverage in worldwide market ranging from countries in Asia Pacific to North America. While it derived over 60% of its total revenue during the Track Record Period from its export sales to overseas countries, the Group significantly increased its sales in Asia mainly including the PRC and Taiwan for the two years ended 30 April 2017. Its well-established worldwide sales network is one of its competitive strengths which enabled the Group to have a broad customer base.
The Group’s product development team possesses the requisite expertise and experience to facilitate its business development, expand its product portfolio at the request of its customers and respond quickly to any change in customers’ preferences. It also places considerable emphasis on the consistent quality of its products and have therefore implemented a stringent quality control system to ensure its products meet the quality standards. Its strong emphasis on product quality and great efforts in ensuring the quality of products is the key to maintain customer confidence and crucial to its success.
In order to cope with the expected increasing demand for LED decorative lighting products and the increasing total revenue of the Christmas lighting manufacturing industry, the Group plans to increase the level of automation and efficiency for the production of its LED decorative lighting products by continuing to upgrade its existing production facilities through purchasing more equipment and machinery. The Group also wishes to purchase additional facilities for better quality control and enhancing the stability and reliability of its LED luminaire lighting series.
The Group plans to further sustain this advantage and strengthen its product development capability by hiring additional personnel for production with appropriate qualifications and providing training to its design and technical personnel in order to better serve customers’ needs and to enable them to keep abreast of the latest production and management practices in the manufacturing industry. Further, the Group will also apply for patents for its product designs to protect its intellectual property rights.
To explore new business opportunities, the Group intends to expand the existing sales and marketing department and strengthen its recognition in the LED lighting industry through various media.
Use of Proceeds
Assuming the Offer Price of HK$0.4 (being the mid-point of the indicative Offer Price range) and the Adjustment Options are not exercised at all, the Group estimates that the aggregate net proceeds from the Share Offer will be approximately HK$48.9million after deducting related underwriting fees and listing expenses. The Group intends to apply such net proceeds in the following manner:
Items/Percentage
– Upgrade Production Facilities: 55%
– Repay Short-term Loans: 25%
– Improve Working Capital: 10%
– Expand Product Portfolio and Strengthen Product Development Capability: 5%
– Expand Sales Force and Sales Channel: 5%
Total: 100%