Link-Hi Holdings IPO shoots up on opening day

China precision steel tubing manufacturer Link-Hi Holdings was actively traded on its debut in the Singapore Exchange on 22nd May 2006. The company offered 25 million new share at S$0.25 each. On its first trading day, the counter started at S$0.38 which was 50% higher than its offer price. The company's products are mainly used in the auto, oil and gas, and machinery and equipment industries. With a total of 6 production lines in Wuxi, it has easy access to customer's base in the Yangtze River Delta region. Overseas sales of its products accounted for up to 19% of revenues for the 1st half of FY2005. With its half year results, the company estimates FY2005 revenues to come in at RMB241.8 million and net profit to be at RMB18.9 million.

Based on the offer price, the firm said it would have a market capitalisation of about S$31.25 million. NRA Capital Pte. Ltd. was the manager for the IPO, while UOB Kay Hian Pte. Ltd. was the placement agent and underwriter.