(Repeats story that ran late on Friday, with no changes to
* Plans Hong Kong share offering in third quarter of this
* Likely to use part of proceeds for overseas expansion, M&A
By Sumeet Chatterjee and Julie Zhu
HONG KONG, May 26 China's Zhejiang Dahua
Technology Co Ltd, a maker of security products, is
planning to raise as much as $1 billion through a share offering
in Hong Kong, three people with direct knowledge of the move
The company, whose main products include access control,
advanced video surveillance systems and remote image monitoring
products, is planning to launch the share sale in the Asian
financial hub in the third quarter, said the people.
Dahua Tech had said in March it planned to apply for
offering up to 724.85 million shares in Hong Kong, but had not
provided details on the timeline as well as how much it was
hoping to raise through the issuance.
The company, which has a presence in about 20 countries
outside China, did not immediately respond to a request for
comment. The sources declined to be named as the company's plans
were not public yet.
Dahua Tech's Shenzhen stock ended down 2.9 percent on Friday
at 18.26 yuan ($2.66), giving it a market value of $7.7 billion.
Chairman Liquan Fu is the single largest shareholder of
Dahua Tech with a 42.26 percent stake, and other minority
shareholders include China International Fund Management and
China International Capital Corp, as per Thomson Reuters data.
Dahua Tech's plan comes as Hong Kong braces for a high
number of potential IPOs, spurred by a 16 percent rise this year
in its benchmark share index, the sixth best-performer
among Asian stock markets.
A $511 million Hong Kong IPO of WuXi Biologics (Cayman) Inc,
a Chinese contract drug research and development company, on
Thursday was covered multiple times on the first day of
book-building, according to Thomson Reuters publication IFR.
BOCOM International Holdings Co, the Hong Kong investment
banking arm of China's fifth-biggest lender Bank of
Communications Co Ltd (BoCom), this month raised
An up to $5 billion listing from China's largest
peer-to-peer lender Lufax and potential IPOs from e-commerce
giant Alibaba's online finance arm and Sinopec
Marketing in Hong Kong are expected to help reverse last year's
22.5 percent slide in Asia-Pacific equity capital markets deals.
While Dahua Tech, which went public in Shenzhen in 2008, did
not specify in March whether the Hong Kong offer will involve
issuance of new shares, Chinese firms making secondary listings
in Hong Kong typically issue new shares as they look to raise
One of the persons said the company plans to use a portion
of the funds raised in Hong Kong for expansion of its overseas
business and bolster its research and development capability.
The company could also target small acquisitions in
developed markets, the person said.
Dahua Tech's 2016 net profit rose 33 percent to 1.8 billion
yuan ($262.58 million), and the company expects its profit in
the first half of this year to surge 20-40 percent, it said in
stock exchange filings last month.
($1 = 6.8550 Chinese yuan renminbi)
(Reporting by Sumeet Chatterjee and Julie Zhu; Editing by