Delta Networks Completes Pricing for Listing on Hong Kong Stock Exchange
Delta Electronics, Inc. (DEI) announced that its subsidiary, Delta Networks Inc. (DNI), has priced its offering on the Stock Exchange of Hong Kong Limited and will go public on July 6, 2007. The price per share is set at HK$4.50. The Global Offering consists of 313,600,000 shares and the total amount being raised is about HK$1.4 billion. DEI is disposing of 28,144,000 shares (HK$126,648,000) through Delta Networks Holding Limited (DNHL), a wholly-owned subsidiary of DEI in this public offering. The anticipated gain from the disposal is about HK$83,000,000. The underwriter, Goldman Sachs, can exercise the over-allocation option up to 47,040,000 shares by July 28, 2007.
With the growing capital markets of Hong Kong, DNI has chosen to list on the Stock Exchange of Hong Kong Limited to facilitate its access to international capital and expansion of its global operations. The proposed use of net proceeds from the issue of new shares of DNI will be for the construction of new manufacturing sites, production expansion, future strategic acquisition, working capital and other general corporate purposes. In 2006, annual sales revenues of DNI reached USD 357 million, and net profit totaled USD 25.57 million. DNI’s CAGR reached 33.7% for sales revenues between 2004 and 2006, and CAGR for profit reached 191.5%.
DNI is a original design manufacturer of networking products. DNI’s businesses include the manufacturing and sales of networking products such as Ethernet switches, broadband and wireless products and various services that include front-end support services, material management services, product design, manufacturing design and test engineering services, assembly and testing services, network planning services and after-sales support services. DNI was once the Network Business Unit of Delta Electronics Inc. and was incorporated in 1999 as a subsidiary of Delta Electronics.
