A unit of Kingboard Holdings is selling about $1.5 billion worth of shares in Kingboard Laminates Holdings, a Hong Kong-listed maker of materials used in printed circuit boards, according to a term sheet seen by Reuters on Tuesday.
Kingboard Investments Limited, a wholly owned subsidiary of Kingboard Holdings, is offering 155 million existing shares in Kingboard Laminates through an accelerated bookbuild.
The shares are being offered at HK$75.60 to HK$77.70 ($9.92) each. That represents a discount of 9.5% to 12% to Kingboard Laminates’ last closing price of HK$85.90 on June 16.
The sale is fully secondary, meaning the shares are being sold by an existing shareholder rather than newly issued by Kingboard Laminates.
Printed circuit boards, or PCBs, connect electronic parts inside devices. Laminates are core materials used to make those boards.
Kingboard Holdings plans to use the net proceeds to invest in its PCB business, improve its capabilities in multi-layer and high-density interconnect products, expand production capacity, speed up research and development, repay existing bank loans and for other corporate purposes.
High-density interconnect, or HDI, products allow more electronic connections to fit into a smaller space. They are used in more complex electronic devices.
The trade date is Wednesday.
($1 = 7.8324 Hong Kong dollars)
Reuters
