On July 2, Futu News reported that $METASURFACE (08637.HK)$The first day opened at a low of 31.4%, and as of press time, it was reported at HKD 1.66 with a turnover of HKD 16.62 million and a total market value of HKD 249 million.
Market source: Futu Securities.
According to previous news, in the previous trading day's Futu dark pool trading, Yuanxu Technology opened high but closed low, falling 16.12% to HKD 2.03. The turnover was HKD 3.6471 million, and each lot was 1,000 shares, excluding handling fees, with a loss of HKD 390 per lot.
In addition, according to previous public news, during the public offering stage, Yuanxu Technology received 2480.61 times oversubscription. After replenishment and re-allocation, the final number of publicly issued shares was 13.5 million shares, accounting for approximately 50% of the total number of publicly issued shares. A total of 30,583 valid applications were received, and 6,862 applications were accepted. The percentage of H shares allocated per application for one lot is approximately 3.01%.
Furthermore, after replenishment and re-allocation, the final number of shares issued internationally was 13.5 million shares, which equates to 50% of the total number of shares issued. Futu news sorted out the distribution standards for the company's public offering as follows:
Company overview
Founded in 2000, Yuanxu Technology is a precision engineering service provider headquartered in Singapore. It has production facilities in Singapore and Malaysia, equipped with advanced and sophisticated machinery to provide precision machining and precision welding services to international companies in the semiconductor and other sectors. Most of the company's machinery and equipment can be used to produce products of various specifications for a wide range of end-user industries. According to a report by Zhaoke Consulting in 2023, the company's semiconductor division in the precision components engineering industry in Singapore ranks fifth by revenue, with a market share of approximately 3.3%.
The company provides precision engineering services to customers, including precision machining services and precision welding services. Precision machining involves the use of computer numerical control machines and other advanced machine tools to cut and shape materials, producing micrometer-level precision parts that meet extremely strict specifications in terms of size, shape, surface finish, and other geometric properties. Precision welding involves the use of advanced welding methods and specialty processes such as lasers and electron beams to connect materials together according to strict specifications and tolerances. With the company's technical capabilities, proprietary know-how, and machinery and equipment, the company provides tailored professional services for customers' specific technology requirements and business needs, thereby establishing its market position in the precision components engineering value chain.
Over the years, the company has expanded its business to serve customers in various sectors, including the semiconductor, aviation and aerospace, and data storage industries. Many of the company's customers are well-known international companies in these industries, including Customer A, which is based in the USA and specializes in supplying equipment for the assembly of integrated circuits, as well as displays for televisions, smartphones, laptops, personal computers, and other electronic products.
Financial overview
In terms of financial performance, Yuanxu Technology's revenue in 2022 and 2023 was SGD 39.116 million and SGD 38.769 million, respectively, with a year-on-year decline in revenue, and gross profit for the same period was SGD 16.056 million and SGD 14.415 million, respectively, with a year-on-year decrease.
Intended Use of Funds
In terms of fundraising purposes, Yuanxu Technology expects a net proceeds of approximately HKD 12.03 million (based on the issue price of HKD 2.42) from the global offering. According to the prospectus, the company currently plans to use approximately 60.1% of the net proceeds for expanding its operating scale and enhancing its production capacity; approximately 15.4% of the net proceeds for strengthening the quality control capabilities of its precision machining services; approximately 4.7% of the net proceeds for strengthening its marketing activities to maintain relationships with existing customers and diversify its customer base; approximately 9.8% of the net proceeds for repaying its bank borrowings; and approximately 10.0% of the net proceeds for general corporate purposes and working capital.
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Editor/irene