Hong Kong firm SFK Construction Holdings looking to list on local bourse

Hong Kong firm SFK Construction Holdings looking to list on local bourse

Hong Kong building construction and civil engineering contractor SFK Construction Holdings is seeking a listing on the local bourse.

The construction group had attempted to go public back in 2008 in a bid to raise up to HK$1.21 billion. Although, it was forced to abort the listing plan due to the deteriorating economic climate at that time.

In its latest bid to become listed, SFK Construction has allocated 60 percent of its IPO proceeds to finance recent, ongoing and future projects.

Its listing prospectus also indicate that it will use 30 percent of the listing proceeds to diversify its construction business via mergers and acquisitions. It did not indicate whether it is in talks or if it has identified possible acquisition targets.

SFK concentrates on construction and maintenance works for buildings and civil engineering in Hong Kong and Macau.

In 2014, SFK Construction was the 10th largest general building contractor in Hong Kong in terms of revenue, according to consulting firm Ipsos.

SFK Construction intends to distribute no less than 40 percent of its net profit as dividends this year, while payout in the coming years will depend on operations, according to its listing prospectus. The firm has 23 general building works projects and eight civil engineering works on its books, with contracts worth around HK$11.2 billion.

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