Pacific Textiles Holdings has kicked off the official roadshow for a Hong Kong initial public offering that aims to raise up to HK$1.97 billion $250 million. The Chinese fabrics manufacturer will be trying to persuade investors with its growth story, arguing promising prospects for ChinaÆs cotton knit manufacturing industry following the expiration of trade quotas in 2005.
The company is offering 25% of its enlarged share capital, or 358 million new shares, at a price between HK$4.15 and HK$5.50. A 15% greenshoe could boost the total proceeds to about $290 million. The deal is jointly arranged by Citi and Morgan Stanley.
According to analysts, the textile manufacturer, which offers fabric knitting,...
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