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Offers 100,000,000 Shares At an Offer Price Range of HK$1.30 to HK$1.60 per Share
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HONG KONG, Dec 1, 2014 - (ACN Newswire) - Global International Credit Group Limited ("GIC" or the "Group"), one of the top ten licensed money lenders in Hong Kong, announced the details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited ("SEHK").
Offering Details
GIC intends to issue a total of 100,000,000 shares, of which 90%, or 90,000,000 shares, are for placing, subject to adjustment. The remaining 10% of the offer shares, or 10,000,000 shares, are for the Hong Kong public offering. Assuming the offer price is fixed at HK$1.45 per share (being the mid-point of the indicative range of the offer price of HK$1.30 to HK$1.60 per share), the net proceeds are expected to be approximately HK$121.0 million.
The Hong Kong Public Offer began on 28 November 2014 (Friday) and will end at noon on 4 December 2014. The final offer price and allotment results are expected to be announced on 11 December 2014 (Thursday). Trading of GIC's shares is expected to commence on the Main Board of SEHK on 12 December (Friday) under the stock code 1669. The shares will be traded in board lots of 2,000 shares.
Investec Capital Asia Limited is the Sole Sponsor. The Joint Bookrunners and Joint Lead Managers are Emperor Securities Limited, Investec Capital Asia Limited, Kim Eng Securities (Hong Kong) Limited, Astrum Capital Management Limited and Sun Securities Limited.
Ms. Wang Yao, Chairman, Chief Executive and Executive Director of GIC, said, "We are pleased to announce the proposed listing of GIC on the Main Board of SEHK, marking a significant milestone in the Group's development. The listing not only provides us with a broader capital platform, but also enhances the Group's corporate image and brand reputation in the market as well as increases the confidence of our consumers. We are confident to strengthen our leading position in the market and achieve better growth."
Corporate Highlights
Strong Market Position
Incorporated in Hong Kong in 2008, GIC mainly provides mortgage loan financings to corporations and private individuals which are secured against real estate assets in Hong Kong. The Group also provides some unsecured personal loans. GIC was one of the top ten licensed money lenders in Hong Kong by revenue and value of loans outstanding in 2013 with a market share of approximately 1.7% of the total industry revenue and approximately 2.5% of the total value of loans outstanding in 2013. GIC ranked the third largest licensed money lender, in terms of revenue and value of mortgage loans outstanding, by property mortgage loans offered amongst licensed money lenders in Hong Kong in 2013.
Providing Loans on an Expedited Basis
As the Group is not subject to the same regulations or restrictions that banks and other financial institutions must operate under, the Group enjoys a higher degree of flexibility to offer lending, including the speed of offering mortgage loans. Although the Group carries out strict credit and compliance checks against all of its new customers, it is able to do so quickly and efficiently and in some cases can process and approve loans within one day which is considerably faster than lending through a commercial bank which may require one to six weeks to approve loans.
Implementation of a Robust Risk Management System
In order to manage the risk at the minimum level, the Group has developed a robust credit review and assessment process which focuses on the identification and creditworthiness of applicants together with the ownership and valuation of the real estate asset. The Group has detailed operation and credit manuals for its business which provide detailed guidelines and rules for its processing of customers' applications.
Future Strategies
GIC intends to strengthen the market position in the licensed money lending industry through the following strategies.
Expanding Loan Portfolio
The Group intends to increase its exposure and brand awareness mainly through increased marketing efforts and advertising of the Group and its products through traditional, online and outdoor media channels; and also increasing its cooperation with independent third party referral agents to broaden the customer base and distribution; as well as increasing the cooperation with realty agents to promote its mortgage loan services.
Strengthening the Brand, Recognition and Presence in the Market
GIC intends to further develop its marketing efforts with the aim of increasing its brand awareness by extending its advertising campaigns across multiple platforms and increased placement of advertisements in newspapers, magazines, television, online, outdoor billboards and public transport.
Use of Proceeds
Assuming the offer price is fixed at HK$1.45 per share (being the mid-point of the indicative range of the offer price of HK$1.30 to HK$1.60 per share), net proceeds are estimated to be HK$121.0 million and will be used as follows:
Items / Approximate percentage
- Expanding mortgage loan portfolio by providing more and/or higher value loans to existing and/or new customers / 80%
- Marketing activities in order to enhance brand awareness and image in Hong Kong, including the placement of advertisements across various media platforms / 10%
- Funding working capital and general corporate purposes / 10%
Dividend Policy
The Group plans to pay dividends in aggregate of not less than 30% of its net profit in each of the two years after the listing (commencing from the year ended 31 December 2014).
Financial Performance
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(HK$000) For the Year Ended 31 December
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2011 2012 2013 CAGR
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Revenue 31,189 57,548 121,240 97.2%
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Gross Profit 21,274 28,088 53,931 59.2%
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Net Profit 18,103 23,399 44,518 56.8%
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Media Enquiries
Strategic Financial Relations Limited
Heidi So +852 2864 4826 / 9461 7088 heidi.so@sprg.com.hk
Brenda Chan +852 2864 4833 / 6108 6048 brenda.chan@sprg.com.hk
Jovanni Cai +852 2864 4937 / 5112 5661 jovanni.cai@sprg.com.hk
Fax: +852 2527 1196
Website: www.sprg.com.hk
Topic: Press release summary
Source: Global International Credit Group Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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