HONG KONG, Feb. 26, 2013 /PRNewswire/ -- Oi Wah Pawnshop Credit Holdings Limited ("Oi Wah", and together with its subsidiaries, the "Group"; stock code: 1319), the largest pawn loan service provider in Hong Kong, announced today the details of its plan to list on the Mainboard of The Stock Exchange of Hong Kong Limited ("SEHK").
A total of 100,000,000 shares (the "Offer Shares") will be offered under the Share Offer, of which 90,000,000 Offer Shares, or 90%, will be offered by way of Placing. The remaining 10%, or 10,000,000 Offer Shares, will be offered under the Hong Kong Public Offer. The Offer Price per Offer Share is expected to be not less than HK$0.75 and not more than HK$0.98.
The Hong Kong Public Offer will commence on 27 February 2013 (Wednesday) and close at 12:00 noon on 4 March 2013 (Monday). The final Offer Price and allotment results are expected to be announced on 11 March 2013 (Monday). Dealings of Shares on the Mainboard of the SEHK are expected to commence on 12 March 2013 (Tuesday).
Assuming an Offer Price of HK$0.87 per Offer Share, being the mid-point of the indicative Offer Price range of HK$0.75 to HK$0.98 per Offer Share, the aggregated net proceeds from the Share Offer (after deducting underwriting fees and estimated expenses in connection with the Share Offer) will be approximately HK$64.5 million. Oi Wah intends to apply approximately 60% in expanding its mortgage loan portfolio and broadening its customer base; approximately 28% in expanding its pawn loan portfolio and establishing a new Customer Service Centre; approximately 10% in general working capital; and the remaining 2% in marketing activities.
Cinda International Capital Limited is the Sole Sponsor of the Share Offer. Cinda International Securities Limited and Haitong International Securities Company Limited are the Joint Bookrunners and Joint Lead Managers of the Share Offer.
Oi Wah established its first pawnshop in 1975. The Group is a financing service provider in Hong Kong, mainly providing short-term secured financing. In 2009, the Group expanded its business from pawn loans to mortgage loans. According to the Ipsos Report, Oi Wah is the largest pawn loan service provider in Hong Kong in terms of loan amount granted and number of pawnshops in 2011. The aggregate amount of pawn loans granted by the Group amounted to approximately 9.4% of the total value of loans and advances granted by all pawn loan service operators in Hong Kong, representing the highest market share.
Pawn Loan Business
The Group is well developed with 12 pawnshops located in various locations in Hong Kong. The Customer Service Centre in the premises of Tak Wah Pawnshop in Central provides customers with private and personalised pawn loan services and customer service support. The Group is one of the only 5 service providers in Hong Kong that possesses both Money Lenders Licence and Pawnbrokers Licences by the year end of 2011. There is a maximum threshold of the loan amount of HK$100,000 to be granted by a pawnbroker under Pawnbrokers Licence, while the Money Lenders Ordinance does not impose a limitation on the loan amount. Thus, possessing both licences allows the Group the flexibility to grant pawn loans with different interest rates, loan amounts and terms to suit the different needs of its clients. The Group's pawn loan business maintains a steady growth. Its total amount of pawn loan granted increased from HK$361.4 million in the year ended 28 February 2010 to HK$414.1 million in the nine months ended 30 November 2012.
Oi Wah leverages on its leading position in the pawnshop business to modernize this traditional industry. It adopts standardized and computerized operating and risk management systems, striving to build up a professional corporate image. With its 38 years of experience, the Group has established long and solid relationships with second-hand product dealers. Its wide network ensures the smooth selling of collaterals.
Mortgage Loan Business
Oi Wah diversified its business to mortgage loans in 2009. It has established a Mortgage Centre in its Head Office in Wanchai to provide private and personalised one-on-one mortgage loan services to its customers. As a money lender, Oi Wah provides flexibility to borrowers with shorter approval time, which is strongly preferred by SMEs and individuals who has short-term financing needs and cannot obtain loans from banks.
Oi Wah's mortgage loan business enjoys huge potentials and has seen a strong growth in the track record period. Its total amount of mortgage loan granted sky-rocketed from HK$3.9M for the year ended 28 February 2010 to HK$67.0M for the nine months ended 30 November 2012.
Mr. Edward Chan, Chairman and CEO of Oi Wah said, "Oi Wah has a long history in the pawnshop industry. We have an experienced management team and have established solid relationships with second-hand product dealers over the years. It is this relationship and the extensive experience of our employees that set a high barrier for new entrants. Lengthy and complicated credit approval process among local banks has created opportunities for financing service providers. Oi Wah, being the largest player in pawn loan industry in Hong Kong, is believed to benefit from this. Looking forward, we strive to leverage on our market position in the pawn loan industry and to further develop our mortgage loan business. We will channel resources to enhance marketing activities to promote the 'Oi Wah' brand name. We will also recruit more personnel with experience, and cooperate with realty agents and referral agents to promote mortgage loan services and expand our customer base."
About Oi Wah Pawnshop Credit Holdings Limited
Oi Wah is a financing service provider in Hong Kong, mainly providing short-term secured financing, including pawn loans and mortgage loans. According to the Ipsos Report, Oi Wah is the largest pawn loan service provider in Hong Kong in 2011 in terms of loan amount granted and number of pawnshops. The Group established its first pawnshop in 1975 and currently owns 12 pawnshops in various locations in Hong Kong. Oi Wah diversified into mortgage loan business in 2009.
