Recorded approximately 162 times of over-subscription for its public offer


HONG KONG, CHINA - Media OutReach - 10 May 2018 - Tsit Wing International Holdings Limited ("Tsit Wing", together with its subsidiaries, the "Group"; stock code: 2119), an integrated B2B coffee and black tea solutions provider, announced the subscription results for its shares (the "Shares") under the public offer (the "Public Offer") and placing (the "Placing", collectively, the "Share Offer"). The Shares under the Public Offer have been well over-subscribed by approximately 162 times. The final offer price per Share has been set near the upper end of the offer price range at HK$1.98 per Share. Dealings in the Shares on the Main Board of The Stock Exchange of Hong Kong Limited ("SEHK") is expected to commence on 11 May 2018 (Friday).


The Offer Shares initially offered under the International Offering have been well oversubscribed. The final number of Offer Shares under the International Offering is 119,600,000 Shares, representing 50% of the Offer Shares available under the Global Offering. There has also been an over-allocation of 35,880,000 Shares in the International Offering and such over-allocation has been covered through the stock borrowing arrangement.


Based on the final offer price of HK$1.98 per Share, the net proceeds from the Share Offer to be received by the Company (after deducting underwriting fees and estimated expenses in connection with the Share Offer) is estimated to be approximately HK$164.0 million.


Tsit Wing intends to use these net proceeds for the following purposes: 1) approximately 40% for strengthening the ability to provide food and beverage products solutions, in particular, potential future business or share acquisitions, joint ventures or other strategic arrangements to expand and enhance its product portfolio and to deepen its market penetration; 2) approximately 20% for capital investments in relation to acquiring, expanding, streamlining or upgrading its manufacturing plants, premises, facilities, equipment or capabilities, with the aim to enhance its production efficiency or reduce its operating costs, or expand its product portfolio; 3) approximately 10% for expanding its food and beverage business in Southeast Asia (including the costs of setting-up representative offices and commercially-viable strategic acquisition); 4) approximately 10% for pursuing product customization and development, whether in-house or through collaboration with external parties, and enhancing its technological capabilities; 5) approximately 10% for bolstering its sales, marketing and advertising efforts to enhance brand recognition and fortify brand loyalty for its products and businesses; and 6) approximately 10% for working capital and other general corporate purposes.


BOCI Asia Limited is the Sole Global Coordinator. BOCI Asia Limited and BOSC International Company Limited are the Joint Sponsors. BOCI Asia Limited, DBS Asia Capital Limited, Kingsway Financial Services Group Limited, Future Land Resources Securities Limited and VBG Capital Limited are the Joint Bookrunners and/or Joint Lead Managers.


Mr. Wong Tat Tong, Chairman, Executive Director & Chief Executive Officer of the Company, said, "We believe that the result of the Share Offer has affirmed market's recognition of the Group's business and confidence in our future prospects. We are honoured that investors have shown great support to the Group. Listing on the Main Board of SEHK enables the Group to further strengthen its leading position in the integrated B2B coffee and black tea solutions market in Hong Kong, enhance its brand recognition and expand its frozen meat and frozen processed food product offerings, in order to capture market opportunities in the PRC and Southeast Asia market."

About Tsit Wing International Holdings Limited

Tsit Wing is a leading integrated B2B coffee and black tea solutions provider in Hong Kong, Macau and the PRC with 85-year heritage. In 2017, coffee sold by the Group can be made into most 337.7 million cups of coffee per year; tea sold can be made into most 403.2 million cups of milk tea per year. Tsit Wing commenced its frozen meat business in Hong Kong and the PRC from 2013.


According to the Frost & Sullivan Report, Tsit Wing is the largest B2B coffee and black tea solutions provider in Hong Kong in 2016 with 24.5% of the market share in terms of B2B revenue.

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