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Can short this one ??? Lets hope so !!!
The offer comprises 28.8m shares - 1m public-offer shares and 27.8m placement shares - at $0.29 each. The total offer, representing 26.79% of the company's enlarged share capital, comprises 22.8m new shares and 6m vendor shares. Trading is expected to start on March 13 after the offer closes at noon on March 11.
The offer is pegged at a price-earnings ratio of 5.7x, based on its net profit of HK$22.1m ($3.96m) for FY06 and a pre-invitation share capital of 84.7m shares.
Joyas hopes to raise net proceeds of $4.6m. It will use the money to fund the expansion of machinery and equipment, for additional advertising and promotional activities, to enhance its design and development capabilities and for working capital. Joyas designs premium metal gift products for international brands and labels like Folli Follie, Lamborghini, Wedgwood, Aquascutum London and Marks & Spencer.
Hong Kong-based gift and jewellery products maker Joyas International Holdings lodged its prospectuses on Christmas eve.
Joyas' main business is the design, manufacture, packaging and sale of metal gift products as well as the design of jewellery products. The company's clientele for metal corporate gifts are international brands and design houses and it also co-develops new product designs with them. The products are exported mainly to Europe, the US and Asia and are also sold through franchisee retail outlets in Hong Kong and China.
Joyas designs jewellery products which are manufactured by independent third party sub-contractors. These are limited edition collections with not more than 12 pieces of each design and are sold to jewellery agents and retailers overseas and in Hong Kong.
Out of Joyas' 3 main business segments of metal gift products, jewellery products and packaging, metal gift products accounted for the bulk of revenue. Turnover from this segment amounted to 70.9%, 67.9%, 68.6% and 65.8% of total turnover in FY04, FY05, FY06 and the first half of FY07 respectively. The jewellery business is the next big money spinner for Joyas. It contributed 26.8%, 27.3%, 26.2% and 29.8% of turnover for the respective corresponding periods. The remainder is made up of the packaging business which amounted to about 5% of the total. The sales distribution is global with more than half going to US and European customers.
Joyas plans to use the offer proceeds to expand production facilities and acquire additional machinery and equipment. Other plans include broadening the range of products, enhance design and development capabilities and increase advertising and promotional activities, as well as enter the Australian, Eastern European and other markets.
The company had a profit of HK$22.1 million ($4.1 million) on turnover of HK$155.1 million in '06.