PC Partner Group Plans Strategic Move to Singapore
PC Partner Group intends to move its headquarters to Singapore and seek a secondary listing on the Singapore Exchange. To strengthen its presence in Southeast Asia, the company plans to open a new manufacturing facility in Indonesia. PC Partner intends to convert its secondary listing in Singapore to a primary listing, resulting in the delisting of its shares on the Hong Kong stock exchange.
The company, which is known for assembling video graphics cards powered by Nvidia processors, is looking for a secondary listing on the Singapore Exchange's main board as part of its Southeast Asia expansion strategy.
In a recent statement to the Singapore Exchange, PC Partner announced plans to relocate its headquarters to Singapore and pursue a secondary listing without issuing new shares. Furthermore, the company announced plans to establish an additional manufacturing facility in Indonesia to strengthen its regional presence.
PC Partner's decision to list in Singapore is viewed as a strategic move to expand its footprint in Southeast Asia, allowing the group to better capitalise on business opportunities in the region. The directors of PC Partner believe that this listing will benefit both the company and its shareholders.
Despite a 0.9% drop in its Hong Kong shares to HK$4.47 on Friday, PC Partner's stock value has increased by 42 percent this year, outperforming the Hang Seng Index's modest 5.5% increase during the same period.
Following the successful secondary listing in Singapore, PC Partner intends to convert it into a primary listing, a strategic move that would result in the delisting of its shares from the Hong Kong Stock Exchange. This decision would require shareholder approval at an extraordinary general meeting, as described by the company.
The potential exit from Hong Kong's stock market reflects the region's difficult economic situation in recent years. The prolonged economic downturn has diminished the allure of Hong Kong's $5 trillion stock market, Asia's third-largest.
PC Partner, which originated in 1997 as a modest electronics contract manufacturer with fewer than 300 employees, has evolved into an international entity with global offices retailing its proprietary product lines worldwide. These offerings encompass a diverse range of video graphics cards, motherboards, embedded systems, and video gaming hardware.
Despite a 15% revenue decline in 2023 compared to the previous year, totalling HK$9.2 billion (US$1.2 billion), PC Partner had a diverse regional performance. While sales from the Chinese mainland increased by 6.4%, revenues from other regions, such as Asia, Northern America, and Latin America, decreased by 12% and 38%, respectively.
The company's net income took a substantial hit, plummeting by 91 per cent to HK$60.8 million in the same period due to shrinking profit margins, as highlighted in PC Partner's annual report.
PC Partner Group plans to relocate its headquarters to Singapore and pursue a secondary listing on the Singapore Exchange.
The company aims to establish an additional manufacturing facility in Indonesia to strengthen its presence in Southeast Asia.
PC Partner intends to transition its secondary listing in Singapore into a primary listing, leading to the delisting of its shares from the Hong Kong stock exchange.
Source: SCMP