The offering, arranged by China Everbright Capital and Kim Eng Securities, values the Guangdong government-backed company at 16.7 times 2004 earnings per share of about HK$0.206.
Shares in Nan Yue will begin trading on October 25. The company, which provides logistics management of construction materials for expressway and infrastructure projects and expressway-related services such as gas stations, convenience stores and car maintenance in Guangdong province, sold 138 million H shares, or 33 percent of its enlarged share capital at HK$3.45 apiece, sources said.
Guangdong Nan Yue plans to use 35 percent of the IPO proceeds to expand a cross-border coaching service, 24 percent to expand material logistics services and 15 percent, or HK$57.7 million, to pay down an existing loan.