HONG KONG, April 22, 2020 /PRNewswire/ -- Sunray Engineering Group Limited ("Sunray Engineering Group", together with its subsidiaries, the "Group"; stock code: 8616), a Hong Kong-based building protection solution provider, announced the subscription results for its shares (the "Shares") under the public offer (the "Public Offer") and placing (the "Placing", collectively, the "Share Offer"). The Shares under the Public Offer have been over-subscribed by approximately 34.7 times. The offer price per Share has been set at HK$0.24 per Share. Dealings in the Shares on the GEM of The Stock Exchange of Hong Kong Limited ("SEHK") is expected to commence on 23 April 2020 (Thursday).
Due to the over-subscription in the Public Offer, the re-allocation procedures have been applied. 25,000,000 Offer Shares initially offered under the Placing have been reallocated to the Public Offer. After the reallocation, the final number of Offer Shares allocated to the Public Offer is 50,000,000 Offer Shares, representing 20% of the total number of Offer Shares available under the Share Offer. Based on the final Offer Price of HK$0.24 per Offer Share, the net proceeds from the Share Offer to be received by the Company, after deducting the underwriting fees and commissions and other estimated expenses payable by the Group in connection with the Share Offer, are estimated to be approximately HK$22.5 million.
Sunray Engineering Group intends to use these net proceeds for the following purposes: 1) approximately 9.8% will be used for acquiring additional machinery and equipment for building protection works; 2) approximately 29.1% will be used for expanding its workforce; 3) approximately 31.0% will be used for strengthening its financial position for payment of upfront cost; and 4) 30.1% will be used for expanding its building protection product mix and continuing to develop its own-brand "DP ChemTech" and "DP" products.
Ample Capital Limited is the Sole Sponsor. Alpha Financial Group Limited and Lego Securities Limited are the Joint Global Coordinators. Alpha Financial Group Limited, Lego Securities Limited and Enhanced Securities Limited are the Joint Bookrunners. Alpha Financial Group Limited, Lego Securities Limited, Enhanced Securities Limited, AFG Securities Limited, All EverGreen Securities Limited, Brilliant Norton Securities Company Limited, China-Hong Kong Link Securities Company Limited, CIS Securities Asset Management Limited, Grand Partners Securities Limited, Lee Go Securities Limited and Orient Securities Limited are the Joint Lead Managers.
Mr. Lam Ka Wing, Chairman, Chief Executive Officer and Executive Director of Sunray Engineering Group Limited, said, "Following the increasing demand derived from mega infrastructure construction projects in Hong Kong and the tourism constructions in Macau, the markets of building protection work and building protection products are expected to expand continuously. Listing on the GEM of SEHK enables the Group to further solidify its competitive strengths, and to seize opportunities of industry development."
About the Group
Sunray Engineering Group Limited is a Hong Kong-based building protection solution provider and its solutions integrate the provision of building protection works with a focus on waterproofing works and the supply of building protection products. According to the Frost & Sullivan Report, the Group ranked second in the building protection work market in Hong Kong with a market share of approximately 3.0% in terms of revenue in FY2019.
For FY2018 and FY2019, the Group's overall revenue increased by approximately 25.1% from approximately HK$153.2 million to HK$191.7 million. From 1 April 2018 and up to 22 March 2020 (the Latest Practicable Date), the Group had undertaken 287 building protection works projects in Hong Kong, and the total original contract sum of these projects amounted to approximately HK$657.5 million.