Apr. 17, 2007 (China Knowledge) – Capxon Holdings, a Taiwan-based electronic capacitor manufacturer, has set the price range for its Hong Kong IPO to raise as much as HK$311 million to upgrade its Mainland facilities.

The company is offering 211 million new shares at between HK$0.88 and HK$1.48 each, representing 10 to 17 times earnings for last year, according to a sale document obtained by fund managers.

A source told the South China Morning Post that the offering has received moderate response so far after launching pre-marketing activities to Korean and Japanese investors, the frequent buyers for industrial stocks like Capxon.

Capxon will open retail subscription for Hong Kong investors next week, and the trading debut is scheduled in the first week of next month.

About 85% of the proceeds will be spent on the expansion of anode foil production capacity as well as the upgrade of aluminium electrolytic capacitor production capacity, while the remainder will go to working capital and potential acquisitions, the document shows.

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