Modern Dental Group Ltd. (03600.HK) is considering a 5 percent hike next year in the prices of its dental equipment products sold in mainland China, chief executive Wei Shengjian (魏聖堅) said.
The company’s shares, which started trading on Tuesday, rose 3.8 to 4.5 percent on the gray market on Monday, only to close at a low of HK$4.01, or a loss of as much as HK$190 for each board lot of shares, the Hong Kong Economic Journal reported on Tuesday.
The shares opened unchanged from its offer price at HK$4.2 on Tuesday.
The company mainly sells flanges and other dental products to dentists, out-patient dental clinics and dental departments of hospitals, Wei said.
The net proceeds of the share sale, about HK$656 million, will be used for strategic acquisitions locally and overseas as well as the establishment of a production base in Dongguan.
In the IPO, the company issued 175 million new shares and sold another 75 million existing shares at HK$4.2 each.
Construction of the Dongguan facility is expected to be completed in 2018-2019, doubling the capacity of its existing plants in Shenzhen.
The company currently has 21 sales spots in the mainland and 29 service centers overseas.
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