SOURCE: Speed Apparel Holding Limited

Speed Apparel Holding Limited

May 29, 2017 02:05 ET

Speed Apparel Holding Limited announces its subscription results

Recorded approximately 400 times over-subscription for its public offer

HONG KONG, CHINA--(Marketwired - May 29, 2017) - Speed Apparel Holding Limited ("Speed Apparel," together with its subsidiaries, the "Group") (HKSE: 8183), a Hong Kong apparel supply chain management services provider, announces the subscription results for its shares (the "Shares") under the public offer (the "Public Offer") and placing (the "Placing," together with the Public Offer, the "Share Offer"). The shares under the Public Offer have been very significantly over-subscribed by approximately 400 times. The offer price per share has been set near the mid-point of the offer price range at HK$0.50 per share. Dealings in the shares on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited is expected to commence on 31 May 2017 (Wednesday).

Due to the very significant over-subscription in the Public Offer, the reallocation procedures have been applied. A total number of 50,000,000 shares under the Placing have been reallocated to the Public Offer, so that the total number of shares available under the Public Offer has been increased to 62,500,000 shares, representing 50% of the total number of the offer shares available under the Share Offer. Based on the final offer price of HK$0.50 per Share, the net proceeds from the Share Offer to be received by the Company (after deducting underwriting fees and estimated expenses in connection with the Share Offer) is estimated to be approximately HK$37.1 million.

Speed Apparel intends to apply the net proceeds as follows: 1) approximately 13.5% for strengthening and diversifying the Group's customers base; 2) approximately 26.8% for further expanding the Group's product mix to cater to the customers' need; 3) approximately 20.2% for enhancing the Group's design and development capabilities; and 4) approximately 39.5% for enhancing the Group's inventory management to strengthen operational efficiency.

Messis Capital Limited is the Sponsor of Speed Apparel for the listing and Great Roc Capital Securities Limited is the Bookrunner.

Mr. Chan Wing Kai, the Chairman and the Chief Executive Officer of the Company, said, "We believe that the allotment result reflects market's recognition of the Group's business and confidence in our future prospects. We are honoured that investors have shown great support in the Group. Capitalising on the international financing platform in Hong Kong, ensures the Group to further strengthen our business network, enhance our brand recognition and capture greater market share in the fast fashion industry in the world."

About Speed Apparel Holding Limited

Speed Apparel is an apparel supply chain management services provider. Headquartered in Hong Kong, the Group principally sells knitwear products. The Group provides one-stop apparel supply chain management solutions for its customers ranging from fashion trend analysis, product design and development, sourcing and procurement of materials, production management, quality control and logistics services. During the Track Record Period, majority of the Group's products were sold to Japan. The Group's products were also sold to Hong Kong, the PRC, Taiwan, France, the USA, Australia and South Africa. For each of the two years ended 31 March 2016, revenue of the Group amounted to approximately HK$398.0 million and HK$435.2 million, respectively, representing an increase of approximately 9.3%; and profit for the year amounted to approximately HK$10.5 million and HK$12.5 million, respectively, representing an increase of approximately 19.0%.

Contact Information

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