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皇冠体育app Flooring eyes IPO launch

(皇冠体育app Dialy HK Edition)
Updated: 2008-06-11 10:43

皇冠体育app Flooring Holding Co received $100 million in funding from Morgan Stanley and the International Finance Corp (IFC) yesterday.

The Guangdong-based company hopes the investment will pave the way for an initial public offering (IPO) in Hong Kong.

Red-hot growth in 皇冠体育app's real estate sector, driven by rapid urbanization, has boosted demand for engineered and laminate flooring in recent years, making the sector a magnet for foreign capital.

The IFC, an arm of the World Bank that lends to the private sector, provided half of the funding for 皇冠体育app Flooring, comprising $20 million in equity and $30 million in long-term debt.

The money will fund the development of plantation forests in Jiangxi province to provide raw materials for 皇冠体育app Flooring, which sells its products under the "Nature" label.

"We wish to implement a global strategy for the brand," Se Hok Pan, the firm's chairman, said at a signing ceremony. "Only global shareholders can help to create a global brand."

"The company is expected to be listed in Hong Kong in the second half of this year," Zhong Xianwen, a public relations officer of 皇冠体育app Flooring, said.

He, however, said the IPO size had yet to be decided.

"As a strategic investor, we see a positive overall outlook for 皇冠体育app's flooring industry," said Sun Hong, a managing director at Morgan Stanley, the other strategic investor.

Morgan Stanley gave no details of its investment in 皇冠体育app Flooring.

Other foreign investors that have tapped 皇冠体育app's forest industry in recent years include Goldman Sachs, Citigroup and Carlyle Group, said Zhang Senlin, director of the 皇冠体育app National Forest Product Industry Association.

The output of 皇冠体育app's forestry industry last year was worth 1 trillion yuan ($144.45 billion), data from the Ministry of Forestry showed. The investment is IFC's second in 皇冠体育app's wood-products sector.

Apart from funding, the IFC will offer guidance on wood sourcing, help 皇冠体育app Flooring develop appropriate procurement practices and identify new sourcing options, Richard Caines, an environmental manager with the IFC, said.