Introduction of shares
Main date:
Public release closing date: 12: 00 noon on December 18, 2017
Announcement application results: December 27, 2017
Listing date: December 28, 2017
Guarantor:
Forbes Capital Co., Ltd.
Summary of statistics:
Number of shares sold: 200000000 shares (30% are for sale)
Proportion of shares sold publicly: 10.0%
Sales: HK $0.45 to HK $0.55
Estimated collection of funds: HK $630 million to HK $770 billion
Income per hand: HK $5555.43
A summary of the collection
A Hong Kong subcontractor who provides foundation works (including excavation and support works, cap works and beating construction), ground formation works and other ancillary services (such as roads and drainage works for private sector foundation projects) for major projects. During the three political years ended 31 March 2017 and the four months ended 31 July 2017, foundation works were provided through the Ming Lee Foundation Project, which mainly included the general contractors of private foundation projects in Hong Kong. It is equipped with machines and construction equipment for all kinds of foundation works, including excavators, hydraulic crushers, aircrafts and generators.
Industry summary
According to the Gen Yi Puso report, the total output value of foundation and ground formation projects in Hong Kong increased from HK $213 billion in 2012 to HK $22.9 billion in 2016, with an annual growth rate of 1.8%. During the report period, supported by the government's housing development measures and the 10-year Hong Kong hospital development plan, the total output value of foundation and ground formation projects in Hong Kong further increased to 29.9 billion Hong Kong dollars by 2021, with a complex annual growth rate of 3.5 percent from 2017 to 2012.
Cymbals
Most of the revenue of the collection comes from minority customers. In the three political years ended March 31, 2017 and the four months ended July 31, 2017, the revenue of the five largest customers accounted for about 99.6%, 99.6%, 99.4% and 95.2% of the revenue during the period. In addition, there is no long-term service agreement with the customer, and the service agreements for all foundation works are based on individual projects. Therefore, there is no guarantee that customers can be retained during the expiry period. If the top five customers grant fewer items to the collection, or if the collection fails to win new items, the marketing performance of the collection will be adversely affected.
Valuation
According to the IPO documents, assuming that the dividend of HK $2188 declared on December 6, 2017 and the sale of the shares were completed on July 31, 2017, according to the expected issue of some 7.42 shares after the sale of the outstanding shares, shares should account for HK $0.13 to HK $0.15 per share in the untested tangible assets area.