Introduction -

Recently, there has been an increasing trend of Hong Kong public companies choosing to privatize. Some of these companies were trading at a substantial discount to net asset value with low liquidity, making it difficult for them to raise new equity capital.

In this context, they may find that the administrative costs and management resources associated with maintaining the listing status are no longer warranted, leading to the decision to return the company into private hands with the belief that it would better ensure its future growth.