Hanwei Technology Co., a South China chemical company offering mold release agents, among other products, raised ¥1.2 billion (U.S. 172 million) in an initial public stock offering this week, raising less than what the company had targeted.
Hanwei – which is based in Dongguan, just north of Shenzhen in the Pearl River delta – plans to use the funds to expand its production capacities, most for chemicals sold into the plastics and cosmetics industries.
The prospectus for the stock offering said the company aims to be one of the main domestic producers of chemicals such as zinc stearate and calcium stearate, ethylene bis stearic acid amide and monoglyceride, but that bottlenecks currently prevent it from keeping up with demand.
In addition to mold release agents, the chemicals produced by Hanwei are used as process chemicals in the production of plastic and rubber and also in production of inks, coatings and paper.
Founded in 2008, it reported a net profit of ¥32.8 million in 2021 on sales of ¥525.7 million.
The company had targeted a price of ¥6.5 per share for the stock offering, but purchasing opened at ¥5.98 per share and closed at ¥6.01 per share, according to a filing on the Beijing Stock Exchange.