Auto Street (02443.HK) will be listed on the Hong Kong Stock Exchange from today (May 23) until next Tuesday (May 28). It is expected to be listed on the Hong Kong Stock Exchange on May 31, 2024, and co-sponsored by CITIC Securities and Haitong International.
Auto Street plans to sell 15 million shares globally, of which 90% will be international sales and 10% public sales. The sale price per share ranged from HK$10.20 to HK$11.20. Each lot raised a maximum capital of about HK$168 million.
Assuming an offering price of HK$10.70 per share (median of the offering price range), Auto Street expects the total listing expenses to be around HK$62.5 million, including 3% underwriting commission, 2% discretionary bonus, SEHK listing fee, SFC transaction levy, SEHK transaction fees, legal and other professional fees, printing and other expenses.
Auto Street did not introduce any cornerstone investors in this IPO.
Auto Street's net capital raised about HK$98 million (based on the median sale price range): about 40% will be used to expand the geographical coverage of the auction house network; about 10% will be used to strengthen the Group's relationships with existing sellers and buyers and attract new sellers and buyers to the platform; about 15% will be used to develop and diversify the Group's service portfolio and explore new growth areas; about 15% will be used to further invest in R&D, further strengthen digital infrastructure, and continue to support digital initiatives; about 10% will be used to establish potential strategic partnerships and alliances with business partners, and to attract new sellers and buyers The target company in the industry invests in or acquires a controlling interest in the target company in the industry; approximately 10% is used for working capital and general corporate purposes.
Auto Street is the current IPO. CITIC Securities and Haitong International are co-sponsors, and CITIC Lyon and Haitong International are the overall coordinators and joint global coordinators. Other underwriters include Fosun International Securities, China Galaxy International, CMB International, SPDB International, BOC International, Futu Securities, Livermore Securities, Baihui Securities, and Ruibang Securities.
According to the prospectus, in Auto Street's shareholder structure after listing, Mr. Yang Aihua held 12.01% of the shares through Changguang Investment Co., Ltd.; Mr. Yang Hansong held 6.00% of the shares through World Key (80% Yang Hansong/20% of Dai Hu Peng's Ideal Standard Group); Mr. Yang Zehua held 4.20% of the shares through Jumbo Create I; Yang Aihua, Yang Hansong, and Yang Zehua are brothers. The Cox family holds 10.81% of shares through Manheim Investments; Mr. Han Zhuoheng holds 8.42% of shares through Zhuoheng Holding; Baoxin Auto Finance I, a wholly-owned subsidiary of Guanghui Automobile (600297.SH), holds 4.98%; Guanghui Baoxin (01293.HK) holds 2.52% of shares; Tencent (00700.HK) holds shares through Image Frame 600297.SH 3.06%; Huaxing Capital (01911.HK) holds 2.10% of shares through CR Matrix; Jingdong Group (09618.HK) holds 1.53% of shares through Dazzling Calcite; other directors and senior management hold 6.10% (Ms. Gao Wei holds 3.00% of shares through Longkun Investment, Mr. Zhou Yu holds 1.20% of shares through Xiangyu Investment, and Mr. Zhao Hongliang holds shares through Hongrun Investment 0.96%, Mr. Liu Ming holds 0.84% of shares through Mingchang Investment); Entities held by strategic partners hold 12.94% of shares (Paddy Investment holds 3.36%, Tongyuan Group holds 2.90%, JYS Family holds 1.80%, Valensky Holding holds 1.16%, Mr. Hua Jianfeng holds 0.96% of shares through Huatong Auto, Yuebao Holding holds shares 0.84%, Xiangyun holds 0.68%, Junrong holds 0.62%, Delicacy-Auto holds 0.62%, HCH Company 0.60%); other pre-listing investors hold 23.61% of the shares (Ms. Zhang Yaqi holds 4.50% of shares through Grand Zhang YQ, Ms. Lu Xia holds 3.60% of shares through New Plus, Mr. Wang Yang holds 3.00% of shares through Sunrise Spark, Shanghai Dingshu Through Zeal Auto, Ms. Zhu Xiuying holds 1.80% of the shares through Future Optimal, Mr. Liu Haijun holds 1.80% of the shares through Vision Now, Ms. Lu Jianying holds 1.20% of the shares through Oak Business, Mr. Shi Yanjun holds 1.20% of the shares through Jinyi, Mr. Shi Yanjun holds 0.42% of the shares through Sun Win Business Management, and Li Xingxing Auto holds shares 1.20%; Ms. Xue Mei holds 0.60% of shares through Super May; Mr. Mai Xuesong holds 0.48% of shares through My Splendid; Mr. Chee Keong Wong and Mr. Chong Jooi Sng holds 0.40% of shares through Triton Venture; Ms. Hur Wei Wun holds 0.20% of shares through Wise Axis; Dai Hu Peng holds 0.18% of shares through Powermark Commerce; Ms. Li Meihua approved Unity Delight holds 0.12%); other public shareholders hold 1.80%.
Auto Street, as a used car trading platform, mainly provides end-to-end highly standardized and highly reliable used car trading solutions for sellers (mainly 4S stores) and buyers (mainly professional buyers). According to Insight Consulting's data, Auto Street is the largest used car trading platform in the country in terms of trading volume in 2022. In 2022, about 160,000 used cars were traded through Auto Street's trading platform, accounting for 12.6% of the Chinese used car trading platform market; Auto Street is also the used car trading service provider with the largest number of offline auctions and the widest geographical coverage of offline services in the country. By the end of 2023, Auto Street had set up 79 shooting stations in 74 cities in China, providing offline services covering 317 cities across the country.
Auto Street prospectus link:
