Mainboard-listed Raffles Education Corporation's Oriental University City Holdings announced on Thursday the details of its share listing on the Hong Kong Stock Exchange's Growth Enterprise Market.
The initial placing will comprise 45 million shares, priced from HK$2.60 to HK$2.68 per share. Shares will be traded in board lots of 1,000 each.
Expected gross proceeds of the placement is HK$118.8 million (S$20.53 million), assuming a placing price of HK$2.64 per share and that the offer size adjustment option is not exercised. The placing began on Wednesday.
Net proceeds will be about HK$77.8 million, assuming that the offer size adjustment option is not exercised and that the shares are placed at HK$2.64 per share, which is the mid-point of the placing price range.
The company intends to use all of the estimated net proceeds for constructing new dormitories on the campus site.
The determination of the placing price and the level of interest will be announced on Thursday, Jan 15. Trading in the shares of Oriental University City is expected to commence on Jan 16.
BNP Paribas Securities Asia is the sole sponsor, bookrunner and lead manager of the placing.
Located in Langfang city, Hebei province, Oriental University City owns and leases out educational facilities, primarily teaching buildings and dormitories, to education institutions in China. It also leases out various supporting facilities to its tenants in China.
Raffles expects Oriental University City to gain from China's ongoing economic restructuring, which will generate greater need for skilled labour, and potentially increase demand for education facilities.
After a trading halt was lifted at about 11:15am, Raffles' shares were trading at 36.5 cents at 1:10pm, a 1.39 per cent rise from Wednesday's close.