On January 31, gelonghui – huitongda network (09878. HK) announced that the company plans to sell 51.6062 million shares worldwide, including 5.1607 million public shares, 46.4455 million international shares and 15% over allotment of shares; Offering from January 31 to February 10, 2022, and the expected pricing date is February 11; The offer price is HK $43.00-48.00 per offer share, 100 units per hand, and the admission fee is about HK $4848; Citigroup, China International Capital Corporation Limited(601995) and Huaxing capital are the co sponsors; It is expected that the shares will be listed on the main board of the stock exchange on February 18, 2022.
The company is a fast-growing trading and service platform dedicated to serving enterprise customers in China’s retail industry, and is committed to providing high-quality goods and services for China’s sinking market. According to the frost Sullivan report, China’s sinking retail market covers the retail market in all villages and towns, rural areas and suburban areas of non first and second tier cities in China. According to the frost Sullivan report, the retail industry in China’s sinking market and China’s overall market is still highly dispersed and the digital penetration rate is low. In the trading platform serving enterprise customers in China’s retail industry, the company ranks first and third respectively according to the trading business scale facing the sinking market and China’s overall market in 2020, At the same time, the market share in each market is less than 1%.
The company has entered into a cornerstone investment agreement under which cornerstone investors have agreed to subscribe for a total of US $150 million (or approximately HK $1168.3 million) of available offer shares at the offer price. Assuming that the offer price is HK $45.50 (i.e. the median of the offer price range), the total number of offer shares to be subscribed by cornerstone investors will be 25.677 million shares. Cornerstone investors include Skyworth Overseas Investment Holdings Limited, golden weather Corporation (wholly-owned and beneficially owned by Zhu Xingliang, founder and controlling shareholder of Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) (002081. SZ)), windfall T & L SPC, Hailan Group Co., Ltd., sensepower Management Limited (an indirect wholly-owned subsidiary of Shangtang (00020. HK)), and Jinglin Asset Management Hong Kong Limited.
Assuming that the over allotment option is not exercised and assuming the offer price of HK $45.50 per share (i.e. the median indicative offer price range), it is estimated that the net proceeds from the global offering will be approximately HK $2225.6 million. The company plans to use about 30% of the net proceeds from the global offering to strengthen the relationship with existing customers and further expand the company’s customer base; About 25% is used to optimize the capacity and efficiency of the company’s supply chain; About 20% is used to increase the investment in the IT infrastructure of the company’s platform and enhance the liquidity of store SaaS + business; About 15% is used to selectively seek strategic cooperation, investment or acquisition with the following participants; And about 10% will be used as working capital.
