Guangdong Dtech Technology (HKG:1377) launched its Hong Kong initial public offering on Tuesday, seeking to raise up to HK$4.80 billion.
The drill bits supplier is offering 12.6 million H-shares at an indicative price of up to HK$380 per share, according to a Hong Kong bourse filing.
The deal comprises 1.3 million shares for Hong Kong investors and 11.4 million shares for international investors, subject to reallocation and the overallotment option.
The offer price is expected to be determined by July 7, with allocation results due by July 8, ahead of the company's planned trading debut on July 9.
Net proceeds will be used to expand the company's production and pursue strategic acquisitions. They will also be used for investments in frontier technologies.
The company secured 17 cornerstone investors who committed to purchasing up to $254 million worth of IPO shares.
CLSA, HSBC, ABCI Securities, GF Securities, Huatai Financial, Guosen Securities, CMBC Securities, China Galaxy International, CMB International Capital and BOCI Asia are serving as the underwriters for the offering.