China Dongxiang (Group) Co., Ltd. Commencement of Trading on The Hong Kong Stock Exchange Stock Closed at HK$5.43, 36.43% higher than its Offer Price of HK$3.98
(October 10, 2007 - Hong Kong) China Dongxiang (Group) Co., Ltd. ("China Dongxiang" or the "Company"; stock code: 3818), a leading international sportswear brand enterprise based in the PRC, is pleased to announce the commencement of trading of its shares on the Main Board of The Stock Exchange of Hong Kong Limited ("Hong Kong Stock Exchange") today. The shares of China Dongxiang were actively traded with a total trading volume of approximately 694.5 million Shares, representing a total turnover of approximately HK$3.748 billion in its listing debut. The intra-day highest price was HK$5.56 per Share, and closed at HK$5.43, up by approximately 36.43% as compared to the offer price of HK$3.98 per Share.
"Today is the day on which the shares of China Dongxiang (Group) Co., Ltd. are formally listed on the Stock Exchange of Hong Kong, which also marks a milestone amid the development of the Company. The performance of China Dongxiang in the first trading day is extremely encouraging, and the share price sufficiently reflects the corporate value of China Dongxiang and investor's confidence in us." said Mr. Chen Yihong, Chairman & Executive Director of China Dongxiang.
Looking ahead, Mr. Chen added, "China Dongxiang will strive to capture the opportunities bigger than ever in the domestic and international sportswear market, aspire to develop into a leading international brand enterprise in the sportswear market of the PRC and make an effort to maximize the returns of shareholders."
In connection with its IPO, a total of 1,375,000,000 Shares were offered and sold in the Global Offering at the price of HK$3.98 per Share. Deutsche Bank and Merrill Lynch are the Joint Global Coordinators, Joint Bookrunners, Joint Sponsors and Joint Lead Managers for this Global Offering.
About China Dongxiang (Group) Co., Ltd.
China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise based in the PRC. Its Kappa Brand is among the top three international sportswear brands in the PRC in terms of sales revenue. The Company is primarily engaged in the design, development, marketing and wholesale of branded sportswear in the PRC. Since May 30, 2006, China Dongxiang has owned all rights to the internationally recognized Kappa Brand in the PRC and Macau.
In addition, China Dongxiang's licensed Rukka Brand is the first step in its multiple brand strategy, offering performance-focused sportswear and accessories. It also operates as a sourcing centre for BasicNet, the owner of the Kappa Brand worldwide other than in the PRC, Macau and Japan, and generates sales revenue from organizing design development, production and manufacturing of Kappa Brand products to approximately 20 Kappa licensees in approximately 20 countries.
This press release is issued by Wonderful Sky Public Relations & Financial Consultant Co., Ltd. on behalf of China Dongxiang (Group) Co., Ltd.
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Note: This press release is for information only and does not constitute any recommendation or invitation for acquisition, purchase or subscription of the securities of China Dongxiang (Group) Co., Ltd. nor does it intend to act as a recommendation of the sale of securities or any invitation for acquisition, purchase or subscription of securities.
This press release is not an offer of securities for sale in the United States. Securities may not be offered or sotd in the United States absent registration or an exemption from registration. The Offer Shares have not been, and will not be, registered under the US Securities Act of 1933. There will be no public offering of the Shares in the United States.
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