Diaper and other hygiene products maker Soft International Group Ltd. recently raised up to $19 million through the launch of its initial public offering in Hong Kong earlier this month. The company said it aimed to sell 250 million shares at an offer price of HK$0.50 to HK$0.60 per share through the offering. The subscription period will end on March 24, with shares set to make their trading debut three days later.
Soft International manufacturers baby care products under the Insoftb brand. Its revenue rose 5.6% year-on-year in the first nine months of last year to $72 million, with Russia accounting for 39.6% of sales. Its profit for the period totaled $5.5 million, down 26.3% year-on-year.
The company plans to use more than half of the IPO proceeds to purchase manufacturing equipment for its core baby and women’s care products. Another 17% will go to marketing and brand enhancement, and a similar amount will be used to upgrade its warehouses and IT infrastructure.
