CK Life To Raise HK $2.93 Bn Via IPO
"This is a good time for Hong Kong investors to participate in the excitement of our products," Victor Li, chairman of CK Life and son of Li Ka-shing, told reporters at a news briefing.
The shares, to be sold for between HK $1.80 and HK $2.00, will begin trading on Hong Kong’s second board Growth Enterprise Market on July 16. The net proceeds of between HK $2.5 billion to HK $2.8 billion will be used primarily for research, development, and marketing, and the company said it expects to have spent half of that by the end of 2004.
CK Life is a spin-off of Li’s property flagship Cheung Kong (Holdings) and is generating attention largely because of its association with him. Li’s investing acumen and rags-to-riches story have made him a local hero.
However, a more sober market in 2002 is unlikely to make CK Life an encore of Li’s Internet punt tom.com. That IPO triggered near-riots here two years ago as eager retail investors sought to buy into Li’s web venture.
"There is still a lot of uncertainty in the market right now. Nobody knows about biotech, we don’t see any track record from CK Life," said Herbert Lau, research director at Celestial Asia Securities.
Hong Kong has little in the way of a biotech sector, and stock investors in
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