Lung Fung (HKG:2290) launched its Hong Kong initial public offering on Thursday, seeking to raise up to HK$797.5 million.
The Hong Kong-based beauty, health, and pharmaceutical products retailer is offering 125 million shares at an indicative maximum price of HK$6.38 per share, according to a filing with the Hong Kong bourse.
The offering comprises 12.5 million shares for Hong Kong investors and 112.5 million shares for international investors, subject to reallocation and the over-allotment option.
The offer price is expected to be determined by June 3, with allocation results due by June 4, ahead of the company's planned trading debut on June 5.
Net proceeds will mainly be used to expand and optimize Lung Fung Group's retail and online sales network, including opening up to 11 new stores in Hong Kong and strengthening inventory procurement.
The funds will also support loan repayments, strategic investments and acquisitions, IT system upgrades, supply chain enhancement, brand marketing, and working capital.
DBS Asia Capital is acting as sole sponsor, overall coordinator, sole global coordinator, joint bookrunner, and joint lead manager.
CMB International Capital, Phillip Securities (Hong Kong), SPDB International Capital, and uSmart Securities are serving as joint bookrunners and joint lead managers.