Friday June 26, 03:43 AM
UPDATE 1-China's BaWang raises $214 mln in HK IPO
HONG KONG, June 26 (Reuters) - Chinese herbal shampoo maker BaWang International (Group) Holding Ltd priced its IPO at the top end of the indicative range on Friday, raising HK$1.67 billion ($213.6 million), according to sources close to the deal.
BaWang is selling 700 million shares at HK$2.38 per share, a value of 18 times its estimated earnings for 2009.
The issue was more than 400 times over-subscribed at the retail level, and more than 40 times at the institutional level, a source with direct knowledge of the matter said.
The Chinese shampoo maker posted net profit of 281.8 million yuan ($41.22 million) for 2008, up from 181.3 million yuan in the previous year.
Proceeds from the offering will be used to expand production and the company's distribution network, according to the preliminary prospectus.
With products ranging from shampoo and haircare to toothpaste and bodywash, Bawang is set to price its shares on June 26 with dealing in shares expected to begin on July 3.
HSBC (LSE: HSBA.L - news) and Morgan Stanley (NYSE: MS - news) are managing the offering.
(Reporting by Michael Flaherty and Fion Li; Editing by Ken Wills and Chris Lewis) Keywords: BAWANG IPO/
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