HONG KONG-based Travel Expert will be listed on the Hong Kong Stock Exchange starting September 29.
A specialist in FIT packages, the travel agent’s IPO will release 100 million shares priced between HK$0.56 and HK$0.69 per share, which will earn the company HK$49.5 million (US$6.35 million) after deducting underwriting fees and other expenses.
Travel Expert chairman, Daniel Ko, said: “The proposed listing will not only provide abundant capital for accelerating our business development in Asia, especially in China, but will also reinforce the group’s leadership in the local FIT market segment, and further promote the continued growth of our business.”
Company founder Iras Ko said: “We aim at spending 40 per cent of the proceeds on developing our corporate travel and MICE business, and another 40 per cent to explore expansion opportunities in Asia, particularly China.”
“We have already applied to the Chinese government to set up a wholly owned enterprise in Shenzhen, and hopefully it’ll be approved soon,” he added.
Travel Expert has a 10 per cent market share of FIT product sales in Hong Kong, making it the biggest supplier there for this segment.
The company serviced approximately 320,000 customers in financial year 2011, up from 235,000 in 2009. Revenue has increased by 21.5 per cent, from HK$168.5 million in 2010 to HK$204.8 million in 2011.