By Carrie Chen
HONG KONG (Nov 27) -- Cup-noodles maker Nissin Foods expects to raise up to HK$1.13 billion ($144.9 million) from an initial public offering in Hong Kong, according to a source.
The company is offering roughly 268.6 million shares in an indicative range of HK$3.45 to HK$4.21 a share, said the source, who didn't want to be identified. Eight cornerstone investors, including Japan's Itochu Corp. and Mitsubishi Corp, will invest up to $36.2 million, about 25% of the offering at the top end of the price range.
The issue has an over-allotment option of 40.3 million shares, or 15% of the offer shares.
Nissin Foods, which makes instant noodles and frozen foods, reported a profit of HK$102.6 million for the six months ended Jun. 30, a drop of 10.9% from the year ago period. Revenue for the period edged 1.6% higher.
The company expects to use proceeds from the offering to expand and upgrade production plants and facilities, boost its sales and distribution network and improve its research-and-development capabilities.
The offering will likely open for subscription on Wednesday, with pricing details expected next Monday. Shares are expected to begin trading on Hong Kong's main board on Dec. 11.
Nomura International (Hong Kong) is the sole sponsor for the offering.
- By Carrie Chen; firstname.lastname@example.org; +852 3960 5102
- Edited by Suzannah Benjamin
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