$32.4M IPO

A CHINA-BASED maker of stamping machines and related components is launching an initial public offer (IPO) to raise about $32.4 million.

Bright World Precision Machinery's offer comprises 105 million ordinary shares - five million allocated for the public and the rest to be placed out- at 36 cents each.

Based in Danyang city in Jiangsu province, Bright World's stamping machines are marketed under two brands - AOTU and World.

Its net profit before tax rose to 81.8 million yuan (S$16.6 million) in 2004 from 18.5 million yuan in the 2002 financial year.

Chief executive Shao Jian Jun said: "Armed with the financial resources, we will be able to seize the immense opportunities for stamping machines in a large cross-section of the manufacturing sector in (China)."

Of the $32.4 million that Bright World hopes to raise, $28.1 million will be used to expand its production capacity, $2.2 million to set up a research and development centre in Shanghai and $1.6 million to establish a sales office in Guangdong province.

The rest is for working capital.

The offer closes at noon on April 25, with trading expected to begin on April 27.