It plans to issue 19.4513 million H shares globally, including 1.9452 million shares publicly issued in Hong Kong and 17.5061 million shares internationally. It also has up to 2.9176 million share adjustment options and a 15% over-allotment option. The issuance price will be HKD 40.50 per H share, with trading in board lots of 100 H shares. H shares are expected to start trading on the Hong Kong Stock Exchange at 9:00 am on June 28, 2024 (Friday) Hong Kong time.
Futu Holdings plans to issue 19.4513 million H shares globally, including 1.9452 million shares publicly issued in Hong Kong and 17.5061 million shares internationally. It also has up to 2.9176 million share adjustment options and a 15% over-allotment option. The issuance price will be HKD 40.50 per H share, with trading in board lots of 100 H shares. H shares are expected to start trading on the Hong Kong Stock Exchange at 9:00 am on June 28, 2024 (Friday) Hong Kong time.
In addition, the company has entered into cornerstone investment agreements with Huang River Investment Limited, a wholly-owned subsidiary of Tencent Holdings Limited (00700), Southern Fund Management Co., Ltd., and CPE FUND. The cornerstone investors have agreed to subscribe to a certain number of issuance shares at the issuance price of USD 56 million.
Assuming that the share adjustment rights and over-allotment rights are not exercised, the net proceeds from the global offering are expected to be approximately HKD 713.2 million, calculated at the issue price of HKD 40.50 per H share. 73.3% of the proceeds will be used to expand the sales network by opening new stores in the domestic and overseas markets over the next few years to promote the internationalization of the brand; 11.3% will be used to maintain brand positioning and increase brand awareness; 2.7% will be used to optimize the internal information technology system and enhance automation and informationization levels to improve operating efficiency; 2.7% will be used to strengthen research and development capabilities; and 10% will be used for general operating capital and general corporate purposes.
Reportedly, Lao Pu Gold is a brand certified by the China Gold Association that has pioneered the concept of "ancient gold" in China and is the first professional brand for Chinese hand-made gold ornaments. Lao Pu Gold inherits Chinese classical culture and non-legacy craftsmanship, combining Chinese non-legacy cultural value and significant product differentiation. According to Frost Sullivan, as of 2023, the company's market share in the Chinese ancient gold jewelry market and the gold jewelry market was 2.0% and 0.6%, respectively. During the reporting period, the company generated most of its revenue from the sale of the original design ancient gold products through its offline self-operated stores. The company operates its offline stores under a self-operated model. As of the last practicable date, the company has opened 33 self-operated stores in 14 Chinese cities, mostly in first-tier and new first-tier cities.
According to Frost Sullivan, in 2022 and 2023, the company's single-store sales ranked first among all gold jewelry brands in China for two consecutive years. In 2023, the company's performance further increased significantly. Among the stores in existence as of December 31, 2023, its average store sales reached RMB 93.90 million, double the average store sales as of December 31, 2022.
During the reporting period, the company achieved substantial growth. Despite the adverse impact of the COVID-19 pandemic, the company's revenue still increased from RMB 1.2646 billion in 2021 to RMB 1.2942 billion in 2022, and further to RMB 3.1796 billion in 2023, with a compound annual growth rate of 58.6% from 2021 to 2023. Net income for 2021, 2022, and 2023 was RMB 114 million, RMB 94.5 million, and RMB 416.3 million, respectively.