Kwong Luen Engineering Holdings
Kwong Luen Engineering Holdings is a foundation works contractor in Hong Kong. It commenced business in 1995 and have since undertaken foundation works in the role of subcontractor through Kwong Luen Engineering, its principal operating subsidiary. According to the F&S Report, the Group was ranked as the fourth largest (in terms of revenue) foundation works subcontractor in Hong Kong in 2019, and accounted for approximately 1.7% market share of the foundation industry.
During the FY2017/18, FY2018/19, FY2019/20 and the five months ended 31 August 2020, the foundation works undertaken mainly comprised ELS and other associated works including pile cap construction, underground drainage works and site formation works. The majority of revenue was derived from foundation works in residential developments.
The Group pricing strategies for public and private sector projects; and residential and non-residential projects are largely similar. Its customers mainly included construction contractors or foundation works contractors in Hong Kong.
As at 31 March 2018, 2019, 2020, 31 August 2020 and 17 Feb 2021, the Group had a total of 12, 18, 23, 33 and 16 projects in its backlog (including projects that have been awarded but not yet commenced).
| Market | Hong Kong (Main Board) |
| Business Nature | Construction |
| Website | www.kwong-luen.com.hk |
| Board Lot | 5,000 |
| Registrar & Transfer Office | Boardroom Share Registrars (HK) |
| No. of Offer Shares | 250m shares |
| No. of Placing Shares | 225m shares |
| No. of Public Offer Shares | 25.00m shares |
| Offer Price | $0.50 - $0.54 |
| Nominal Value | HK$ 0.01 each |
| Stock Code | 1413 |
| Sponsor(s) | Grande Capital Limited |
| Underwriter(s) | Space Securities Limited; CMBC Securities Company Limited; Innovax Securities Limited; Guosen Securities (HK) Capital Company Limited; SPDB International Capital Limited; Freeman Securities Limited; Realord Asia Pacific Securities Limited; Victory Securities Company Limited; DL SECURITIES (HK) LIMITED; uSmart Securities Limited; GLAM Capital Limited; Plutus Securities Limited |
| Application Period | Feb 26 (Fri) - Noon, Mar 3 (Wed) |
| Price Determination Date | On or Before 5pm, Mar 5 (Fri) |
| Result Announcement Date | On or Before Mar 10 (Wed) |
| Dispatch of Shares and Refund Cheques | On or Before Mar 10 (Wed) |
| Dealings in Shares commence on | Mar 11, 2021. (Thu) |
| Times of HK Offer Shares Subscription | 15X - 50X | 50X - 100X | Over 100X |
| % of total shares reallocated to HK Offer | 30% | 40% | 50% |
| Executive | YIP Kwong Cheung (Chairman), KWAN Chui Ling |
| Independent Non-Executive | CHENG Shing Yan, WONG Yiu Kit Ernest, TANG Sher Kin |
| Director YIP Kwong Cheung | 75.00% |
| (Year ended Mar 31) | |||
| 2020 * | 2020 | 2019 | |
| Revenue | 221,235 | 404,825 | 272,916 |
| Gross Profit | 28,523 | 52,217 | 33,224 |
| Pre-Taxed Profit | 18,629 | 46,380 | 30,127 |
| Attributable Profit for the period | 14,340 | 38,408 | 25,156 |
| * For the five months ended August 31, 2020. | |||
| Offer Price | $0.50 - $0.54 |
| Capitalization | $500m - $540m |
| Unaudited pro forma adj NAV / share | $0.19 - $0.20 |
| Assuming the offer price being at the mid-point of $0.52, the net proceeds raised would be HK$92.7m, of which: |
| * $38.1m (41.1%) to be used for financing the up-front costs of projects;; |
| * $34.8m (37.5%) to purchase additional machinery, namely excavators and crawler crane; |
| * $14.8m (16.0%) to be used for further expanding and strengthening our manpower by recruiting additional staff; |
| * $5.0m (5.4%) to be used for purchasing a building information modeling software together with certain ancillary supporting hardware device. |
| 11/03/2021 16:08 |
| {New Stock}KWONG LUEN ENG(01413) ends down 22.22% at HK$0.42 |
| 11/03/2021 09:20 |
| {New Stock}KWONG LUEN ENG(01413) opens down 5.56% at HK$0.51 |
| Code | Name | Nominal | Change | %Change | |
| 01413 | KWONG LUEN ENG |  | 0.335 | -0.005 | -1.471% |
| 01591 | SHUN WO GROUP |  | 0.023 | 0.000 | 0.000% |
| 06080 | WING CHI HLDGS | | 0.086 | -0.002 | -2.273% |
| 08262 | SUPER STRONG | | 0.300 | -0.015 | -4.762% |
| 08460 | BASETROPHY GP | | 0.062 | -0.006 | -8.824% |
| Remark： | The above information is referenced from the prospectus. |
| All data is calculated from the non- exercise rights(if applicable). | |
| Quote data is at least 15-min delayed，last updated: 13/04/2021 17:59 |
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