Aluminium extruder Ocean Grand Holdings' proposed spin-off of its electroplating chemicals business could be completed by the first quarter, according to company officials.
Chairman Michael Yip Kim-po said under the scheme, the company expected to offer about 15 per cent of the share capital of its 89.8 per cent-owned subsidiary Ocean Grand Chemicals (OCG) on the main board of the Hong Kong stock exchange.
The planned offer together with another 10.2 per cent of the company's shares held by other private investors would allow the subsidiary to meet the listing rules' 25 per cent minimum public float requirement.
Locally based investment bank Kingsway Capital has been appointed as the listing sponsor.
A formal application for the proposed spin-off was submitted to the stock exchange on Tuesday. Mr Yip said the company had yet to finalise how much would be raised as the details of the spin-off were still being worked out.
OCG is a newly established firm serving as the listing vehicle for Ocean Grand's precious metal electroplating chemicals business.
The business, which was acquired by the company in 1999, generated a turnover of HK$150.62 million last year.
