ZONBONG LANDSCAPE Environmental Limited plans to offer an aggregate of 68,750,000 Shares (comprising 55,000,000 new Shares and 13,750,000 Sale Shares, and subject to the Over-allotment Option) under the Global Offering, of which 6,876,000 Shares (subject to reallocation) will be offered in the Hong Kong Public Offering, and 61,874,000 Shares (comprising 48,124,000 new Shares and 13,750,000 Sale Shares, and subject to the Over-allotment Option and reallocation) will be offered by way of International Placing. The Offer Price will not be more than HKD2.42 per Offer Share and is expected to be not less than HKD1.90 per Offer Share.
The Hong Kong Public Offering will commence on Tuesday, 22 December 2020 and is expected to close at 12:00 noon (at 11:30 a.m. for submitting applications under the eWhite Form Service) on Monday, 28 December 2020. Dealings of the Shares on the Main Board of Hong Kong Stock Exchange are expected to commence on Wednesday, 6 January 2021. The Shares will be traded in board lots of 2,000 Shares each.
Assuming an Offer Price of HKD2.16 per Offer Share (being the midpoint of the stated range between HKD1.90 and HKD2.42 per Offer Share), the Company estimates that it will receive net proceeds of approximately HKD63.0 million from the Global Offering after deducting underwriting commissions and other estimated expenses in connection with the Global Offering, assuming the Over-allotment Option is not exercised. To be in line with its strategies, the Company intends to use the proceeds from the Global Offering for the purposes and in the amounts set out below:
– Approximately 14.8%, or HKD9.3 million, is expected to be used for the establishment of regional design offices in Beijing, Shanghai and Chongqing, including expenses for renting office premises, purchasing office supplies and equipment, and recruiting personnel in line with business expansion in these regions;
– Approximately 23.7%, or HKD15.0 million, is expected to be used for the upfront costs in connection with the upcoming construction work of the Changchun Zoo Project, for which the Group was awarded a total contract sum of approximately RMB78.0 million for providing landscaping construction works at the new site for the Changchun Zoo;
– Approximately 26.1%, or HKD16.4 million, is expected to be used for investment into Ulanhot Tianjiao Tianjun Tourism Development Limited, which is a project company under the PPP model set up by the Group and the local government of Ulanhot City for financing, developing, operating and maintaining the Shenjunshan Project;
– Approximately 7.4%, or HKD4.7 million, is expected to be used for acquiring a centralised ERP system to enhance the information technology capability and project implementation efficiency;
– Approximately 18.0%, or HKD11.3 million, is expected to be used for the repayment of the bank loan of RMB30 million which will mature in August 2021. The purpose of the bank loan to be repaid was primarily to finance the Group’s working capital; and
– Approximately 10.0%, or HKD6.3 million, is expected to be used as general working capital of the Group.
If the Offer Price is fixed at HKD2.42 per Offer Share, being the high-end of the indicative Offer Price range stated and assuming that the Over-allotment Option is not exercised, the net proceeds will be increased by approximately HKD13.6 million. The Company intends to apply the additional net proceeds for the above purposes on a pro-rata basis. If the Offer Price is set at the low-end of the indicative Offer Price range, being HKD1.90 per Offer Share, the net proceeds the Company receives from the Global Offering will decrease by approximately HKD13.6 million. The Company intends to reduce the net proceeds for the above purposes on a pro-rata basis.
China Tonghai Capital Limited is the Sole Sponsor, and China Tonghai Securities Limited is the Sole Global Coordinator, the Joint Bookrunner and the Joint Lead Manager for this Global Offering. CMBC Securities Company Limited, Shenwan Hongyuan Capital (H.K.) Limited, Southwest Securities (HK) Brokerage Limited, SPDB International Capital Limited, are the Joint Bookrunners and Joint Lead Managers. Central China International Capital Limited, Eddid Securities and Futures Limited, Elstone Securities Limited, Realord Asia Pacific Securities Limited, Seazen Resources Securities Limited, are the Joint Lead Managers for this Global Offering.
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