Based on the final offer price of HK$0.40 per Share, the net proceeds from the Share Offer to be received by Grand Talents Group (after deducting underwriting fees and estimated expenses in connection with the Share Offer) is estimated to be approximately HK$23.5 million.
Grand Talents Group intends to use these net proceeds for the following purposes: 1) approximately 37.4% to acquire additional machinery and equipment; 2) approximately 39.6% for strengthening its manpower to ensure sufficient manpower for the newly awarded projects; 3) approximately 21.3% will be earmarked to take out surety/performance bonds issued by banks or authorised insurers in the amount of certain percentage of the contract sum in favour of customers for potential projects; 4) approximately 1.7% for general working capital purposes.
Pulsar Capital Limited is the Sole Sponsor. Sun International Securities Limited is the Sole Bookrunner and the Joint Lead Manager. Elstone Securities Limited is the Joint Lead Manager.
Mr. Ha Chak Hung, Chairman and Executive Director of Grand Talents Group, said, "we believe that the result of the Share Offer has affirmed market's recognition of the Group's future prospects. Listing on GEM of SEHK enables the Group to further strengthen our equipment and manpower, and cater for the growing demand and Government expenditure in the civil engineering industry."
About Grand Talents Group Holdings Limited
Grand Talents Group Holdings Limited is a civil engineering subcontractor with over eight years of experience in Hong Kong. It principally repairs and maintains structures of roads and highways in Hong Kong. Since 2013, it has extended its services to the construction of sewerage, waterworks and barrier-free access facilities. Grand Talents Group recorded approximately HK$91.8 million of revenue for the year ended 31 March 2018. The Group intends to compete for repair and maintenance projects in other regions in Hong Kong, to enhance its market and seize the opportunity of Government expenditure in the civil engineering industry.