CFMEE launches HK IPO at up to HKD252.73, seeks HKD3.07 billion

Direct-write lithography equipment maker CFMEE (09630.HK) launched its Hong Kong IPO today, offering shares at up to HKD252.73 apiece. The company plans to offer 12.84 million H shares globally, with the Hong Kong public tranche accounting for about 10 percent and the international placing for the remainder.

"The Hong Kong IPO market is seeing a strong rebound, creating favorable conditions for issuers," Goldman Sachs said in a note, as CFMEE becomes the latest A-share listed company to pursue a dual listing in the city.

The indicative price range of HKD240.09 to HKD252.73 per share implies an entry fee of about HKD12,764 for a board lot of 50 shares. At the mid-point of HKD246.41, net proceeds are estimated at approximately HKD3.07 billion. The offer period runs through June 23, with listing expected on June 26.

The IPO has attracted 17 cornerstone investors, including Hefei SASAC, Hillhouse Capital's HHLRA, VGT (02476.HK), MONTAGE TECH (06809.HK), TONGFU MICROELECTRONICS (002156.SZ) and SUNGROW POWER (300274.SZ). They have committed to subscribe for about 6.42 million shares, representing roughly half of the total offering, with a subscription amount of nearly USD202 million at the mid-point price. CICC is acting as the sole sponsor.

The pricing gives CFMEE a valuation that will be tested against its A-share listing on the Shanghai Stock Exchange (688630.SH), where shares have gained more than 3 percent. First-day trading on June 26 will gauge institutional demand for the dual-listed semiconductor equipment maker as Hong Kong's IPO pipeline recovers.

This article is for informational purposes only and does not constitute investment advice.