Tycoon Group plans Hong Kong IPO with health care flavour as firm adds masks, disinfectant to product offerings
- Firm adds surgical masks, disinfectant to its line-up of skincare and health supplements en route Hong Kong IPO
- Hong Kong IPO proceeds have dwindled this year amid pandemic, set for leanest quarter in seven years: Refinitiv data
Tycoon Group Holdings, seller of health supplements and skin care products, launched its initial public offering (IPO) in Hong Kong, having recently added “anti-epidemic” products like surgical masks to its portfolio amid the coronavirus outbreak.
The firm is offering 192.4 million shares for sale globally through April 3, with 19.2 million for Hong Kong investors and 173 million for international buyers at a range of HK$1.48 to HK$1.52 per share, according to a statement on Monday.
The group aims to raise HK$230.3 million (US$29.5 million) net of listing expenses, based on the mid-price of HK$1.50 apiece. Its shares are expected to start trading on the city’s stock exchange on April 15 under the stock code 3390.
The stock offering will test investor appetite amid wild swings in global markets, with many major stock indexes falling into bear-market territory this month as the coronavirus pandemic inflicts higher death toll worldwide. Proceeds from IPOs in Hong Kong have shrunk by at least one-third this quarter from a year earlier amid the health crisis.
For Tycoon Group, the money will help pay for efforts to develop its supply chain and retail management system, promote some of its 120 different brands in Hong Kong, Macau, mainland China and Singapore, repay older debt and for working capital, it added.
The company recently ventured into sourcing and distributing surgical masks, thermometers, hand sanitiser and cleaning wipes, as demand for anti-epidemic items surges as medical professionals and individuals run out of supplies.
