Placing moderately over-subscribed
Placing Price set at HK$1.07 per Placing Share
HONG KONG, Oct. 10, 2013 /PRNewswire/ -- RM Group Holdings Limited ("RM", and together with its subsidiaries, the "Group"; stock code: 8185), the third largest Proprietary Chinese Medicine ("PCM") health supplements provider in Hong Kong in 2012, announced encouraging subscription results and final placing price per Placing Share ("Placing Price").
A total of 129,600,000 shares ("Placing Shares") were offered by way of placing ("Placing") and was approximately 2 times over-subscribed. The final Placing Price has been set at the upper-end of the Placing Price range at HK$1.07. Dealing in RM's shares on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited is expected to commence on 11 October 2013 (Friday). Based on the Placing Price of HK$1.07 per Placing Share, the net proceeds from the Placing (after deduction of listing related expenses) is estimated to be approximately HK$119 million.
WAG Worldsec Corporate Finance Limited is the Sole Sponsor and Lead Manager of the Placing. Great Roc Capital Securities Limited, Luen Fat Securities Company Limited and WAG Worldsec Corporate Finance Limited are the Joint Lead Underwriters. Convoy Investment Services Limited, SBI E-2 Capital Financial Services Limited, Luk Fook Securities (HK) Limited, Roctec Securities Company Limited, and Wocom Securities Limited, together with the Joint Lead Underwriters, are the Underwriters.
Mr. Chan Yan Tak, Chairman and CEO of RM, said, "We are honored that investors have shown great support in the Group. We believe the remarkable response is the market's recognition of the Group's business and confidence in our future prospects. Looking forward, we strive to capitalize on the international financing platform in Hong Kong, tap into business opportunities laid ahead and strengthen our leading position in the industry. We hope to expand our portfolio through the cooperation with CUCAMed Company Limited, a wholly owned subsidiary of the Chinese University of Hong Kong Foundation Limited, and venture into the Taiwan market, thus promote Royal Medic's brand image."
Based on a Placing Price of HK$1.07 per Placing Share, the aggregated net proceeds from the Placing (after deduction of listing related expenses) will be HK$119 million. RM intends to apply approximately 40% to fund the Group's cooperation with a university; approximately 35% to promote the Group's "Royal Medic" brand in overseas market; approximately 11% in marketing activities to promote the Group's brands in Hong Kong; approximately 5% to increase the number of Special Designated Counters ("SDCs"); and approximately 9% for general working capital and general corporate purposes.
