Panda-Recruit, a Hong Kong job hunting service, priced its shares at HK$0.28 each, the lowest ever for a Growth Enterprise Market stock, as start-ups race to secure at least some of the dwindling dollars investors are prepared to put into new online or technology companies.
The Hong Kong-based company, which lost HK$6.2 million ($795,000) in the first five months of this year, cut its price target by half rather than be shut out of the market altogether. It plans to sell 225 million shares to raise HK$63 million. Trading in the shares begins July 20.
The company plans to use the money to expand its internet advertising business and bi-weekly magazine. It also issued an overallotment option of 51.75 million should demand exceed supply. About 75% of the shares will go to institutions, with the rest offered to the public. ING Barings managed the sale.