A Hong Kong financial institution, AMTD International Inc., prepares to lift off early next week in a $176 million initial public offering in New York.
The firm anticipates selling 20.8 million of its American depositary shares in the price range of $8.10 to $8.48, according to its prospectus updated Wednesday. Underwriters may purchase up to an additional 3.1 million ADSs.
AMTD ranked first among independent investment banking firms and was the largest independent asset management firm in Asia last year and in the first quarter of 2019, according to China Insights Consultancy (CIC) cited in the prospectus.
“Compared to other global and Chinese market players in Hong Kong, we believe that we benefit from greater execution efficiency, supreme local market and industry know-how, and unparalleled access to the sizeable capital of Asia's tycoon families,” AMTD said in its filing.
For the first quarter, the fast-growing company reported $38.9 million in revenue, double from the same period a year ago. Its net income increased 70 percent year-over-year to $27.3 million, or 21 cents per ADS, according to the filing.
In the full year 2018, AMTD doubled its revenue to $92.1 million compared with 2017. Income for the year was $66.9 million, or 30 cents per share.
The company said it intends to use half of the new capital for expansion, while the rest will be applied toward acquisitions and general corporate purposes.
Underwriters on the deal are AMTD Global Markets Ltd., Loop Capital Markets LLC, MasterLink Securities (Hong Kong) Corp. Ltd., Tiger Brokers (NZ) Ltd., ViewTrade Securities Inc. and Boustead Securities.
AMTD has applied to trade its shares under the ticker symbol “HKIB” on the New York Stock Exchange.
(By Anthony Russo)