Hong Kong: Deacons advised Hong Kong Economic Times on its HK$177 million IPO

August, 2005 - Hong Kong, Hong Kong

Deacons acted for Hong Kong Economic Times Holdings Limited (“HKET”), a leading branded provider of integrated financial information and services in Hong Kong, on its Main Board listing of the Stock Exchange of Hong Kong Limited (“Hong Kong Stock Exchange”). The IPO of 104 million shares, 25% of HKET’s enlarged share capital, was almost 400 times over-subscribed and had raised about HK$177 million (US$22.7 million). Trading of HKET’s shares began on 3 August 2005. Stock price went from the initial public offering price of HK$1.70 to HK$2.30 per share, an increase of 35% in a single day of trading, which made HKET the best performer on the first day of trading among companies listed on the Hong Kong Stock Exchange in recent months.

HKET, which publishes the city’s leading financial newspaper Hong Kong Economic Times, PC magazine e-Zone, recruitment paper Career Times, and also owns financial information provider ET Net, had leaped 150% to a net profit of HK$65 million in the financial year ending March 2005. Of the net proceeds of the share offer, HKET had earmarked HK$50 million to fund its new businesses in China. This includes HK$30 million for its China advertising business and possible co-operative ventures with other mainland media firms, and HK$20 million for developing ET Net’s presence on the mainland. A further HK$30 million is to be used for new magazine launches and HK$25 million will be spent over three years to upgrade its Hong Kong newspaper production line.

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