NVC Lighting seeks $272 million in Hong Kong IPO

NVC Lighting Holdings, one of the leading suppliers of lighting products in China, has started taking orders from institutions for its up to HK$2.11 billion ($272 million) initial public offering in Hong Kong.

The Guangdong-based company produces luminaire, lamp and other lighting electronics products, which it then sells via distributors. It plans to use the proceeds from the deal to fund market expansion, brand name penetration and product research and development.

Demand for lighting products, particularly energy-saving ones, has seen a rapid surge in China fuelled by the country's dazzling economic growth and fast urbanisation. China's top two power groups, Huaneng Power and Datang International Power, said last month that their power output had risen by 40% and 33%, respectively, during the first quarter. Lighting product players are racing to capture this growth as well.

Global giant Phillips Lighting is the current leader in China's lighting product market, while NVC Lighting is trying to cement the number two position as the market undergoes consolidation, favouring players that provide good quality and with recognised names, NVC said in a preliminary IPO prospectus.