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Sabtu, 28 September 2019 09:26:00

CR Construction Group to raise a maximum of approximately HK$194.4 million by way of public offer and placing

Highlights
Established in 1967, one of the leading building contractors in Hong Kong with over 50 years of experience
Principally act as a main contractor in building construction works and RMAA works projects across public and private sectors in Hong Kong

According to the CIC Report, the Group ranked the third among all main contractors in Hong Kong in terms of revenue from building construction works for the year ended 31 December 2018 with a market share of approximately 5.2%
The Group has completed 16 building construction works projects and nine RMAA works projects during the Track Record Period, the aggregate original contract sum of which amounted to approximately HK$8,710.9 million and HK$876.5 million, respectively

As at the Latest Practicable Date, the Group has nine building construction works projects and eight RMAA works projects which were in progress

HONG KONG, - 27 September 2019 -  CR Construction Group Holdings Limited ("CR Construction", together with its subsidiaries, the "Group"; stock code: 1582.HK), the third largest main building contractor in Hong Kong in 2018[1], announces the details of its plan to list on the Main Board of The Stock Exchange for Hong Kong Limited ("SEHK") today.
 
A total of 138,850,000 shares will be offered under the Share Offer, of which 124,965,000 Shares, or 90% (subject to re-allocation), will be offered by way of Placing; while the remaining 10%, or 13,885,000 Shares (subject to re-allocation), will be offered under the Public Offer. The Offer Price per Offer Share is expected to be not less than HK$1.0 and not more than HK$1.4. The Public Offer will commence on 27 September 2019 (Friday) and close at 12:00 noon on 3 October 2019 (Thursday). The allotment result is expected to be announced on 15 October 2019 (Tuesday). Dealings in CR Construction's shares on the Main Board of the SEHK are expected to commence on 16 October 2019 (Wednesday).
 
Assuming an Offer Price of HK$1.2 per Offer Share (being the midpoint of the Offer Price range), the aggregated net proceeds from the Share Offer, after deducting underwriting fees and estimated expenses payable in connection with the Share Offer, will be approximately HK$123.0 million. CR Construction intends to use these net proceeds for the following purposes: 1) approximately 87.3% will be used for financing the upfront costs for potential new building construction works and RMAA works projects; 2) approximately 8.0% will be used in strengthening manpower; and 3) approximately 4.7% will be used in enhancing information technology.
 
First Shanghai Capital Limited is the Sole Sponsor, while First Shanghai Securities Limited, Zhongtai International Securities Limited, First Capital Securities Limited, Guotai Junan Securities (Hong Kong) Limited" and Haitong International Securities Company Limited are the Joint Bookrunners and the Joint Lead Managers. Livermore Holdings Limited, CVP Securities Limited and Zinvest Global Limited are the Joint Lead Managers.  
 
Business Overview
 
Established in 1967, CR Construction is one of the leading building contractors in Hong Kong with over 50 years of experience. The Group principally act as a main contractor in building construction works and RMAA works projects across public and private sectors in Hong Kong. According to the CIC Report, it ranked the third among all main contractors in Hong Kong in terms of revenue from building construction works for the year ended 31 December 2018 with a market share of approximately 5.2%.
 
As a main contractor, the Group is responsible for (i) overall management of the projects; (ii) formulating work programmes; (iii) engaging subcontractors and supervising their works; (iv) sourcing construction materials; (v) communication and coordination with customers and their consultant teams; and (vi) safeguarding compliance with safety, environmental and other contractual requirements.
 
Customers of the Group can be divided into two categories: (a) customers from the public sector including various Government departments such as the Housing Authority and the Education Bureau, educational institutions and NGOs; and (b) customers from the private sector such as private property developers and other listed and private companies. (*).