| Convoy Financial Services Holdings Limited Announces Proposed Listing on Main Board of HKSE - Placing and Public Offer of 100,000,000 Shares at between HK$1.00 and HK$1.20 per Share to raise up to HK$120 million
(Hong Kong, 28 June 2010) - Convoy Financial Services Holdings Limited ("CFSH", together with its subsidiaries, the "Group"), the largest independent insurance and MPF schemes brokerage firm in Hong Kong in terms of number of consultants, today announced the details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited ("HKSE"). Of the 100,000,000 shares for placing and public offering (subject to re-allocation), 90% will be for international placing and 10% will be offered to the public in Hong Kong. The indicative price range is between HK$1.20 and HK$1.00 per Share. The total issue size is estimated at between approximately HK$120 million and HK$100 million. The public offer will begin on 29 June 2010 (Tuesday) and end at noon on 5 July 2010 (Monday). The final offer price and allotment results will be announced on 12 July 2010 (Monday). Dealing in the shares of CFSH is expected to commence on the Main Board of HKSE on 13 July 2010 (Tuesday) under the stock code 1019. Shares will be traded in board lots of 2,000 shares. The offer has attracted Manulife International Holdings Limited ("MIHL") as the cornerstone investor. Based on the mid-point of the proposed offer, the shares to be subscribed by MIHL will be 19.2 million shares, representing 4.8% of the total issued shares of the company immediately after the offer. Quam Capital Limited is the Sponsor, while Quam Securities Company Limited is the Bookrunner and Joint Lead Manager and Convoy Investment Services Limited is the Joint Lead Manager of the listing. Mr. Quincy Wong, Chairman of CFSH, said, "During the past few years, we have grown rapidly to where we are presently the largest independent insurance and MPF schemes brokerage firm in Hong Kong in terms of number of consultants. Due to our independent and neutral standing, we are able to recommend the products most suitable for our clients, tailored to their specific risks and expectations of returns. We believe that the listing will be definitely conducive to the further enhancement of the Group's image and our onward development in the insurance and MPF schemes brokerage market in the future." CFSH is principally engaged in the insurance and MPF schemes brokerage business. With over 1,000 quality and competent consultants, CFSH boosts the largest sales force in Hong Kong, representing approximately 16% of the total consultants eligible to market ILAS in Hong Kong. Leveraging its well-established professional and continuous training system for consultants, all of them are registered with PIBA (Professional Insurance Brokers Association), while more than 70% being registered with MPFA (Mandatory Provident Fund Schemes Authority). The Group's senior and intermediary members are quite stable with less than 1% and 6% turnover rate respectively in both 2007 and 2008. The Group maintains a solid relationship with product issuers. It had built up a network with not less than 12 ILAS issuers and seven MPF providers and certain other product issuers and formed strategic partnership in promotion, marketing and sale of insurance products and MPF schemes. With the support of existing product issuers, the group is capable to provide a wide range of products, which helps customers with different profiles, risk appetite to meet their financial goal. In 2009, it was estimated that the new ILAS business arranged by the Group on behalf of the product issuers accounted for approximately 7% of total new ILAS business in Hong Kong market (including insurance brokerage firms, banks and insurance companies). To ensure compliance with relevant legal and regulatory requirement; the Group have set up a comprehensive internal control procedure. As a result, the Group has received no unfavourable judgment or verdict nor any form of sanction since 1993. Led by a young and experienced management team, despite a drop in revenue in 2008 as a result of negative investment sentiment amid the global credit crunch, CFSH achieved a recovery in profitability in 2009, with net profit increased by 20.9% to approximately HK$38,000,000. In view of the new transfer policy of MPF schemes which is expected to be in or around 2011, the Group is well prepared to grasp the emerging opportunities ahead. "We believe that the demand for ILAS, MPF and general conventional insurance products in Hong Kong will continue to grow. To grasp these opportunities, our mission is to establish a largest distribution network of insurance products and MPF schemes in Hong Kong and offer independent, professional and value added services to the general public. Looking forward, we will further enhance the quality of consultants via various trainings; sourcing more ILAS, MPF and other insurance products and enhance promotional efforts; exploring merger and acquisition opportunities and business collaboration with well established companies; as well as addition & extension of further services and distribution channels" Mr. Wong concluded. Offering Structure
Use of Net Proceeds Based on the offer price of HK$1.10 per offer Share (being the mid-point of the offer price range), the net proceeds are estimated at approximately HK$94,000,000 and will be used for:
Financial Highlights
About Convoy Financial Services Holdings Limited Media Enquiries
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